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The art and science of valuation
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Understanding Business Value

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Net
Multiple

Ninety-eight percent of small businesses sell for between 1 and 5 years net income (1-5x). And about 70% sell for 2-3x net.

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At the end of the day, business value is the price a company’s tangible and intangible assets should bring in a competitive and open market, so the price, risk and returns are evaluated against other investments.

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Value
Components

There are 5 key components of business value:

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  1. Market value of assets.

  2. Historical trends of revenues, expenses, and cash flows.

  3. The value of rights, privileges, and knowledge.

  4. Estimated stability in the future.

  5. Esthetic appeal.

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Valuation
Solutions

We perform third party business valuations and appraisals for:

  • Business Sales

  • Mergers

  • Financing

  • Insurable Value

  • Litigation Support


  • Liquidation or Reorganization

  • Strategic Planning​

For a free, no obligation estimate of value.

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