ValuAdder Business Valuation Blog

Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.

Archive for September, 2007

You can measure the value of a manufacturing firm using a number of well-known methods 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 valuation.  More so than most other business types,… 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

Finding your business value by market comparison You probably noticed that ValuAdder features a number of market-derived Rules of Thumb. The Rules give you a very effective way to estimate your business fair market value using the well-known Comparative Transaction Method. In plain words: you determine the business value by comparison with similar businesses that have actually sold. All you need to do… 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