MidAtlantic Business Advisors

 


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Business Valuations

    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

Income Based Approach
* Excess Earning Method
* Cash Flow Method
* Hypothetical Transaction Method

Market Based Approach    
*Price/EBTIDA Multiple Method
*Price/Revenue Multiple Method
*Price/SDCF Multiple Method

 

     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.