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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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