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.
If you own a software firm, plan to start one or acquire an existing company, here are some interesting facts to consider: The two main segments of the software industry are custom software services and pre-packaged products. Software development services firms Classified under the SIC code 7371 and NAICS 541511, the firms in the software… Continue Reading
If you talk with professional business investors or business brokers, soon enough you will hear them mention business valuation ratios. Business appraisers refer to these tools as valuation multiples. Basically, the ratios are a technique to estimate the value of a business based on comparable business sales. Such market-based valuation tools are very useful in… Continue Reading
Privately owned and operated florists are a major part of the retail industry. Classified under the SIC code 5992 and NAICS 453110, there are around 35,650 such establishments in the US alone. The industry as a whole generates an impressive $6.6B in annual revenues and employs over 135,000 people. Yet an average flower shop is… Continue Reading
If you are like most business people, CPAs, brokers or investors, you probably take the actual business selling prices as a strong indication of what a similar business is worth. In fact, the market approach to business valuation relies on such selling prices comparisons for a good reason: Business selling prices offer an objective evidence… Continue Reading
Need to know how to value a service business? To get a top quality business appraisal, consider using several well-known business valuation methods. Professionally prepared appraisals use several valuation methods. Be aware that each method represents a different view of measuring business value. So it’s a good idea to review the results from several different… Continue Reading
One of the most difficult situations that often call for a business appraisal is divorce. Just about any jurisdiction considers business ownership interest a property that is part of the marital estate. As such, it must be distributed among the spouses. In the US, the family courts follow two standards on how the property in… Continue Reading
Classified under the SIC code 8011, the primary care physician practices are part of a large professional health practitioners service industry. In fact, there are over 373,000 medical practices in the US alone. The industry as a whole generates some $202B in annual revenues, and employs over 3,000,000 professional and office staff. However, a typical… Continue Reading
If you are considering an outside investment for your business or looking to put money into a promising company, business valuation is surely to be one of the key data points in your decision making. Significant investments are usually made in order to achieve some strategic goals such as increasing the business revenues, entering a… Continue Reading
One of the most challenging tasks you are likely to face when considering an outside investment is how to determine the value of your company. Referred to by venture capitalists as the post-money valuation, this key step gives you a number of strategic decision data points: What the entire company is worth, known as the… Continue Reading
Considering getting a surveying firm valuation? If you own a land surveying firm or plan to acquire one, here are some interesting industry statistics. Classified under the SIC code 8713 and NAICS 54136, there are some 770 such establishments in the US alone, employing over 11,500. While the industry as a whole generates $3.1B in… Continue Reading
If you talk to a professional business appraiser, it won’t be long before you hear about the business valuation approaches and methods. These are the tools of the trade – and it is important to understand their relationship. Business appraisers enjoy having an arsenal of tools at their disposal. This gives them the flexibility to… Continue Reading
If you own an established industrial equipment rental and leasing business, plan to buy one or need to provide a business appraisal for a client, consider adding the market-based valuation methods to your toolkit. Classified under the SIC code 7377, profitable firms operating in a well defined, protected niche, are quite valuable and sell often. This… Continue Reading
Our customers often ask us this question: ValuAdder offers a number of business valuation methods. Does using multiple valuation techniques reduce business risk? Our answer is this: applying a number of methods to value a business helps you reveal and assess the business risk much better than using just one method. Appraising a business based… Continue Reading
If you want a business appraised by a qualified business analyst, you are presented with a bewildering array of choices. There are no local or federal license requirements for business appraisers. Instead, a number of professional organizations offer education and professional certifications for appraisers. Each organization has its own set of appraiser endorsement requirements and… Continue Reading
Of all the valuation methods out there, which ones are the best? The answer is it depends. If you need a sure fire prescription for an accurate, defensible business valuation, reach out for the business valuation methods the professional appraisers use. Each method has its own strengths and weaknesses. Because it reveals your business value… Continue Reading