Exit Planning: Business Valuation
Knowing the Present Value of Your Company
As you begin to prepare your business for sale, knowing your present value is a good starting place. You want to have a clear idea of what you want your business to sell for and what the value of your business is now, so that you will know how much value to add through exit planning.
A business valuation is important for buy-sell agreements, but the primary reason you want a business valuation is to know the value of your sweat equity. Is your hard work increasing your net worth, or are you falling behind?
You should have a professional to establish the most probable selling price of your company. Otherwise you could leave significant dollars on the table when you sell your company. One of the certified business brokers with Empire Business Brokers can help you to know the value of your business.
When you work with Empire Business Brokers of Greenville-Spartanburg-Anderson, we will assist you in establishing a competitive market value for your company.
We provide several "in house" options for buyers and sellers who want to understand the value of a company. These options range from a simple rule of thumb for your specific business, to a 30+ report that provides up to ten different valuation methods to arrive at the most probable selling price. At your request we will recast your financial information to determine your total Seller's Discretionary Earnings as part of our process. To your business profits we add your depreciation, interest, taxes, amortization, salary, perks, and one time expenses. If you have inventory we may add that. Call us at 864-241-0606 so that we may explain your evaluation options. Depending upon the size of your company, we may advise you to select a third party valuation report for your business.
Third Party Valuation Services
For larger companies, we have relationships with accredited firms whose valuations are accepted by over 90% of all SBA lenders in the country. Using third party valuations can add credibility to the purchase price of your business. Doing so can make price a smaller part of the negotiations, placing more emphasis on other terms & conditions of the transaction. Below are third party valuation reports that we offer;
Value Analysis- 40 page report
Formal Valuation (Limited Scope)- 70 page report
Merger & Acquisition Valuation- 120 page report
Over the last 24 years, Empire Business Brokers has valued and sold virtually every type of business; small, medium and large. This extensive experience, coupled with outstanding valuation tools and business valuation experts, places Empire in the best position to service our clients.
Business for Sale in Upstate South Carolina