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A healthy business is the
largest asset most owners possess, but what is it
worth? It is often said that a business is worth what a
buyer is willing to pay and the seller is willing to
accept. While this is ultimately true, there are many
circumstances in addition to a potential sale that
require the valuation of a business. Placing the right
value on your business is essential for any of the
following purposes:
* Sell your business at the maximum obtainable
market value
* Provide a lender with Fair Market Value
information for a business loan
* Plan for a merger, acquisition or stock
offering
* Develop an estate plan or tax plan to protect your
wealth
* Transfer the business into a trust or create a
succession plan
* Determine the value of assets and liabilities for
a divorce settlement
* Assist attorneys in litigation
* Settle an insurance claim
* Set up an Employee Stock Ownership Plan (ESOP)
MidAtlantic
Business Advisors knows there is more to
the value of a business than tax returns and financial
statements tell you. We understand the impact of
underlying market conditions, competitive factors,
industry direction and short-term imbalances, and we
know the questions to ask to gain the full picture of
the worth of a business. Whatever the purpose, a
valuation can play a key role in helping you achieve
your financial goals. Typically,
MidAtlantic Business Advisors
utilizes the following valuation approaches and
methods, depending upon the purpose:
Asset Based
Approach
* Book Value Method
* Adjusted Book Value Method
* Asset/Cash Flow Method
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Income Based
Approach
* Excess Earning Method
* Cash Flow Method
* Hypothetical Transaction Method
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Market Based
Approach
*Price/EBTIDA Multiple Method
*Price/Revenue Multiple Method
*Price/SDCF Multiple Method
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The end result is a
professional and comprehensive valuation tailored to
your purposes. When you need more than your own opinion
of what your business is worth, contact us.
©2006 by
MidAtlantic Business
Advisors
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