You can measure the value of a manufacturing firm using a number of well-known methods. Importantly, all of these fall under the market, income and asset approaches to business valuation. However, to get accurate business valuation results you need to focus on two key points. 1. Identify and include all income-producing assets in your manufacturing company… Continue Reading
Food service is big business. In the US alone, over 570,000 eating and drinking establishments generate nearly $375 billion in annual revenues and employ some 6.8 million people. The industry landscape is increasingly dominated by regional or national chains which account for more than 70% of the market. Yet the average restaurant grosses $1,200,000 and… Continue Reading
If you are looking at a business valuation result that just doesn’t make sense, chances are there is a mistake. An error can creep into your business valuation in a number of ways. Here are the top ones to watch out for – and avoid when valuing your business: 1. Choosing the wrong type of business value. Business… Continue Reading
Business people often disagree about business valuation results. Given the amount of money at stake, it is not surprising that the parties tend to view what a business is worth from different points of view. Consider these common situations: Business sale The business seller wants to maximize the selling price and looks to support a higher business value.… Continue Reading
Payback period is the time it takes to recover your original investment. If you are buying a small business, that’s your down payment money. You can use ValuAdder Deal Check tool to factor in your payback period. Here’s how: 1. Your purchase price and terms Enter the purchase price and terms you have in mind. Next, specify the compensation… Continue Reading