Valuing Your Business

Everyone who owns a business needs to know its value in today's national and international marketplace. Having an independent business appraisal is vitally important if you are considering:

• Selling a business.

• Bequeathing your business to a family member.

• Looking for ways to increase the value of your business.

There are many companies specializing in valuations of privately-held companies. These firms utilize techniques adapted from Fortune 500 valuations and typically offer four types of business appraisals:

Opinion of Value: A business valuation used for businesses with annual sales under $300,000.

Value Analysis: Limited scope, small business valuations for "Main Street" businesses with sales between $300,000 and $1,000,000. The report is about 40 pages long and considers primarily historical and current performance.

Formal Valuation: Also a limited scope valuation, this business asset appraisal is suitable for firms with sales between $1,000,000 and $3,000,000. About 70 pages long, the report emphasizes ratios, trends, and common size analysis. In addition to company earnings, the balance sheet will be a key component of this analysis.

Mergers and Acquisitions (M & A) Value: A customized valuation, the fee depends on the type of business and the use of the business appraisal. If you are selling a business and would like more information on how to obtain a business valuation, contact a Sunbelt business broker today.

Your Sunbelt business broker will help you determine which business appraisal best suits your needs. Your business broker will also help you gather and package the necessary information for the appraisal.