Business Valuation

Business valuations are essential when dealing with issues related to the full or partial sale of a business.

A valuation report helps to:

  • Avoid leaving cash on the table by selling below-market value
  • Prevent overpricing and ensure salability
  • Attract the highest number of qualified buyers possible
  • Plan for a merger, acquisition, or stock offering
  • Protect your wealth with an estate or tax plan
  • 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)
  • Increase ability to secure financing for a business loan
4

Securing Financing

Securing financing can be a significant challenge to any business, whether through the sale of stock or traditional financing. A certified valuation report increases the confidence and comfort level of a potential investor or lending institution.

A Closer Look at the Business Valuation Process

Determining the fair market value of a business involves many variables that require consideration. Our team evaluates your company's strengths, assets, financial performance and growth projections. We also appreciate and properly value intangibles inherent in any company that are not represented on static financial statements. By determining the justified market range of value that a fully informed buyer is likely to pay for a company, we're able to minimize the risk of losing a timely sale with a qualified buyer by over or undervaluing the business.

MidAtlantic Business Advisors

Recasting

Proper interpretation of financial information is a crucial step in the valuation process. Financial statements prepared for tax purposes present a "tax" view of a business rather than an "economic" view, which reflects the true cash flow available to a new owner. The valuator must be able to ask the right questions and "read between the lines" to present the total discretionary pre-tax income that would be available. Our team works to "recast" the company's financial statements so that the valuation presents the true value of the business.

Contact MidAtlantic Business Advisors: If you are thinking about buying or selling a business, please contact us to learn about our confidential, comprehensive list of services. Please Click Here to fill out a short form, or call (757) 745-9229.

Click to Sign Up or Review Toons and Tip Newsletters

Click Here for a List of Completed Engagements