business valuation services

Business Valuation Services: Can You Receive More Money For Your Business?

July 31, 2015 By Sam Palazzolo, Managing Director

The Point: This “new” economy continues to ripple through the economy even after the “great” depression of a few years ago. What used to be a somewhat simple-straightforward process of selling a business is now complicated. These complications can be calmed when engaging a business valuation service. A business valuation service is responsible for conducting analysis and presenting to leadership real terms regarding the value of a business. In this post, we’ll look at business valuation services and whether or not they can assist sellers in receiving more money for their businesses… Enjoy!

It’s a Business Buyers Market

The recent downturn in the economy has left several business owners and leadership looking to exit. While this could be a painful time, one that most thought they’d be able to overcome, it doesn’t need to be an outright disaster. There are still businesses that are looking to purchase other businesses. However, what if the price at which a business is listed for sale is too low (or on the other hand listed too high)?

Hiring a business evaluation services firm can work to get the most money possible out of your entity. This money should not only represent the organization’s current value, but a value that also equitably represents the amount commensurate with the number of years it took you/your organizational family to build the business.

Business Valuation Services “True” Services

There are several reasons why leadership should look for help in determining this all too important listing/selling price point. For starters, and the answer most typically received when asked what a business valuation service does is to identify the actual value of the company. The number can be difficult to come up with, let alone the emotional value that typically gets applied by business owners. Separating emotional value from actual is a service that an independent business valuation service can produce.

Business valuation services also can act akin to a business broker in helping connect buyers and sellers. While not at the algorithmic efficiency as a dot com dating service (perceived or real), having more prospective buyers review the company can/often does present bidding wars where more than one prospective buyer looks to purchase. These connections can also help foster relationships with those that typically are not looking, as opposed to those only interested in looking for a good deal.

SUMMARY

If you’ve decided to sell your business, a business valuation service is a logical step towards the exit. Providing yourself with accurate data, removing the emotional price points you’d like to receive, and opening the sale to a wider audience can lead to sellers receiving more money for their business.

Sam Palazzolo

Business Valuation Services: Why Independent Business Valuation Services are Crucial!

July 29, 2015 By Sam Palazzolo, Managing Director

The Point: If leadership doesn’t know what a business is worth through a proper business valuation service, the value of the business at time of exit can suffer. Regardless of whether leadership is looking to sell business or acquire a business, you’ll want to insure that a proper valuation analysis is conducted. In this post, we’ll look at business valuation services and why they are crucial… Enjoy!

I’m Looking to Sell My Business… Do I Need a Business Valuation Service?

If you’re looking to sell your business, congratulations! This is a point that many a business owner would like to get to (Hopefully you’re not selling as a result of stress, capital undertow, etc.) Your goal in selling the business is to get as much for the entity as possible. Many sellers look to establish an estimated value prior to listing their business for sale. This allows the seller to list their business for sale at a price that coincides with the predominate value established in the ensuing valuation. Furthermore this business valuation can be provided to prospective buyers as a justification basis for their offer price to purchase.

Different Types of Business Valuation Services

Business Valuation Services derive their valuation from differing methods. Not only are there different valuation methodology employed, but different costs taken into consideration. Selling a business puts the seller, and buyer to a degree, in the position to explain these differences. For example, a basic calculation analysis type might omit details that could increase the value of the business, or conversely decrease the price.

The cost of a thorough business valuation service can be minimal, especially when considering selling a business. However, in comparison to the proceeds that could be either secured, or lost in the sale a business valuation service is crucial.

SUMMARY

You can, and should look to sell your business for as much as possible. Securing a business valuation service as the seller helps establish your selling price as well as acceptable bid levels regarding purchase. Requesting all potential buyer’s bids be considered serious if they in like kind provide their own is a great strategy to sell your business for the maximum amount. Simply put… Business Valuation Services are crucial!

Sam Palazzolo

Business Valuation Services: How Can You Get More Money for Your Business?

July 27, 2015 By Sam Palazzolo, Managing Director

The Point: If you don’t know where you’re going, any road can get you there. Likewise, if you don’t know what your business is worth through a proper business valuation service, establishing business objectives/goals can be a guessing game. Establish objectives/goals too low, and potential is barely reached. Set them too high, and you may never achieve them even in the best of circumstances. A business valuation service establishes the worth of your organization, and as a leader you’d better know what that value is in the event your exit strategy is to sell. In this post, we’ll look at business valuation services as a roadmap to identifying ways in which you can get more money for your business… Enjoy!

We Have Financial Statements… That Should Be Good Enough

At Tip of the Spear, we recommend to clients who are approaching the conclusion of their business career a solid succession plan or exit strategy. As part of your exit strategy, you’ve decided that you’re going to weigh several options. You may sell the business through a business broker. You could consider providing it for sale to your employees as part of an Employee Stop Option Purchase (ESOP). You might consider handing it down to your heirs as part of a larger success planning moment.

Regardless of the exit strategy you choose, knowing the value of your business can help you get more money. However a fatal flaw that I see many owners falsely create is that their financial statements will suffice. In and of themselves, financial statements do provide a degree of perspective regarding the business and its inherent value. However the same financial statements often omit key organizational pieces that could raise the value. Items such as furnishings, building ownership, geographic location, customer records, intellectual property, etc. account for more business value than a profit/loss statement can reflect. As such, we see business valuation services as a best practice when it comes to selling a business.

Business Valuation Services

Business Valuation Services help you quantify all parts contributing to a company’s value. Identifying the value therein can greatly assist you in establishing both proper asking price for the company as well as accepting the right offer. Typically, we see buyers (External or Internal to the organization) requesting their own business valuation service to collect all pertinent information in an effort to protect them from paying too much for a company.

Purchasing an independent business valuation service can also be used to justify the buyer’s offer to the seller (i.e., Why the offer is coming in at $X instead of $Y as listed). We’ve seen episodes where a bid to purchase is accepted because the business valuation service provided such a thorough report to the seller.

SUMMARY

At Tip of the Spear, we believe that you can and should look to sell your business for as much as possible. Securing a business valuation service as the seller helps establish your selling price as well as acceptable bid to purchase levels. Requesting all potential buyer’s bids be considered serious if they in like kind provide their own is a great move in order to sell and get more money for your business.

Sam Palazzolo

business valuation services

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