GET A PROFESSIONAL VALUATION – WHAT, WHY & HOW
Do you know what your business is worth? We Do!
As a business owner you should always know the value of your business. It is important because it is a major component in the development of your exit strategy. Not all business valuations are equal. CII Business Advisors are trained to perform high quality business valuations. They are equipped with some of the best tools, programs and research information available.
Most business owners, when using the term “value”, really mean price. The question of value becomes “How much can I get for the business if I decide to sell?”
Value, however, is not the same as price.
The actual value of a business is not limited to the tangible assets such as furniture, fixtures, equipment, accounts receivable and inventory. The value of any business also includes the intangible assets such as licenses, customer lists, employee agreements and future business considerations.
Businesses have a greater value when they have the following:
• Experienced management teams
• Unique technology, products or services
• Ability to innovate
• Rapidly expanding markets
• A dominant market position
• Strong gross margins
• Projections of positive cash flow and high return on equity
• Consistent earnings
• Good books and records
Business valuation is not an exact science. A business valuation uses standardized formulas and methods, but a professional valuator will also rely on past experience in the industry and a keen knowledge of the current marketplace.
Why Get a Professional Business Valuation?
The answer is simple. In today’s marketplace a business owner should know precisely what his business is worth.
Potential buyers, bankers, the full spectrum of other lending institutions and others concerned with the real market value of your business demand concise, conclusive and professional documentation.
A CII formal business valuation provides the detailed information that others require. And it will tell you, objectively and precisely, what your business is really worth.
If you are the business owner or prospective purchaser, perhaps you’ve come to a crossroad and find yourself wondering:
• Is it more profitable to sell my business than to hold it?
• Should I sell now?
• Should I wait for a more opportune time?
• What is my business really worth to a potential buyer?
• How can I optimize my profits if I do decide to sell?
• Should I buy now?
• Do I need to arm myself with the best professional advice and information available before making my investment decision?
• Will I make a more informed purchase decision with optimum disclosure and understanding?
• Am I being asked to pay a fair market price for the business?
• Does this business satisfy my goals and investment objectives?
Questions like these demonstrate your need for a professional valuation, through which you’ll get the information necessary to make a truly informed decision.
Valuation Process
CII understands how crucial knowing the value of your company can be. The asking price of a company has to be supported by the company’s value. There is no doubt that the higher the value of a business, the higher the asking price can be.
CII Business Advisors are trained in the latest valuation techniques. We employ a proven process of valuation that includes:
• Recasting your income statement and balance sheet
• Defining future business assumptions
• Industry analysis
• Assessment of intangible and tangible assets, and
• Various other value drivers
CII understands the commitment of money, time and dedication that you have put into your business. So, when it comes time for you to sell your company, we will use our experience and resources to help you sell your company for the highest possible price.
Contact CII today to arrange your professional consultation without cost or obligation.