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.
Do you need to value a printing business? First, some industry stats to consider: For a mature industry, commercial printing shows surprisingly low consolidation. There are, for example, some 31,750 lithographic printing establishments in the US alone. This printing industry segment generates an impressive $45B in annual sales and employs nearly 345,000. Yet an average… Continue Reading
Looking to get a valuation for a bakery business? First, some industry stats to ponder: Retail bakery industry – top statistics The bakery industry has deep roots in the economy with a number of established players. Some 9,600 bakeries classified under SIC 5149 and NAICS code 311811 compete in the US alone, And together they… Continue Reading
Whether you are valuing a business by yourself or engage a professional business appraiser, a business appraisal report is a typical work product you get. Such a report does more than summarize the business valuation results – it clearly defines what business ownership interests are being valued. Importantly, it also shows the key assumptions and judgement… Continue Reading
Given the current situation in the real estate market, you may spot an uptick in real estate broker valuation. Many owners want to know what the brokerage is worth. You should get the answer especially if you decide to put the business up for sale. When it comes to valuation, real estate brokerages bear strong… Continue Reading
Valuing a company that is losing money? Businesses face a host of risks every day. But sometimes truly epic economic shifts occur. Whether a financial markets debacle or natural disaster, their effect on the economy and business fortunes may hit abruptly and have profound effects. Once high flying companies could face the headwinds that business… Continue Reading
Looking for a coffee shop valuation? Note these key industry stats: Privately owned specialty coffee shops are ubiquitous and their number is constantly growing. In the US alone, there are some 19,000 privately operated coffee shops, classified under the SIC code 5812 and NAICS 722211. They generate over $11.1B in total annual sales. However, an… Continue Reading
If you are looking to sell your small business or plan to buy one, the central question is what the business is worth on the market. Overprice your business, and you will see little buyer interest. If your asking price is too low, you risk leaving a lot of money on the table. Knowing the market… Continue Reading
Heating, ventilation and air conditioning as well as plumbing contractors make up a very large industry with over $121 billion in annual gross revenues. The industry is still highly fragmented with some 178,550 independent business competing across the US alone. The average business in this industry, classified under SIC 1711, is privately owned and small… Continue Reading
There are no better indicators of what a business is worth than its earning prospects and risk profile. Savvy investors analyze business opportunities by doing careful forecast of their income. But forecasts and money in the bank do differ in one key respect – there is a risk that the business may not live up… Continue Reading
Any business appraisal, whether prepared by you or someone else, depends on the assumptions made at the outset. Take a look at a well-prepared business appraisal report and you will see that, how the business value is measured as well as the circumstances of business appraisal, are clearly spelled out. In addition, assessment of business worth requires informed judgement… Continue Reading
If you own a coin laundry or plan to purchase a laundromat business, you are in good company: there are over 16,700 such businesses in the US alone. The annual revenues for the industry as a whole are just under $2.2B. Yet the average coin laundry is a typical small business: it employs 3 people… Continue Reading
When it comes to valuing a partner’s stake in the business, valuation of the business as a whole is the first step. The next big question is how to allocate this business value among the partners. You may think that that the total business enterprise value should be divided in proportion to the partners ownership… Continue Reading
The numbers of the baby boomers reaching retirement age keep growing. And there is one skilled services sector that is sure to flourish – home health care. Indeed, home health care services, classified under SIC code 8082, have been experiencing rapid growth recently. As a result, there are excellent opportunities for differentiation since a business… Continue Reading
We talked about the factors that create personal goodwill in small businesses and professional practices. The key takeaway is that personal goodwill is associated with the individual practitioner, not the business organization. In contrast, institutional business goodwill arises from the business or practice itself. This is the type of goodwill that you can transfer easily when the… Continue Reading
Business goodwill valuation comes up often in the context of valuing professional practices and consulting service businesses. The typical examples are medical, dental and other healthcare practices, CPA and law firms, engineering and architecture consulting businesses and other professional service companies. A key question you may need to address is how much of the practice… Continue Reading