What is my business worth?
This is an important question when you are thinking about selling your business. At BayState Business Brokers we help our clients get an answer to that question so you can make an informed decision about selling your business now or later.
A business valuation is used to establish a sales price for your business. Valuation is one of the first steps in our process to market your business for sale and it is an important step to help you achieve your goals.
If your business includes real estate, we will discuss and advise you as to recommended approaches to value the real estate, including a real estate appraisal or comparative valuations to be used.
At BayState Business Brokers we offer two approaches to determining the value of your business:
- Business Broker’s Opinion of Value
- Independent Business Valuation
Our Business Broker’s Opinion of Value:
A Broker’s Opinion of Value is suitable for most of our clients when there is information available on businesses similar to your business. An opinion of value approach offers a quicker valuation methodology where we review and analyze your financial data and information about comparative business sales to prepare an estimate of what your business is likely to sell for in current market conditions. This report is typically under 10 pages and is prepared within two weeks.
An Independent Business Valuation
For larger businesses (typically $2M revenue or above) or businesses where there is not as much comparable business sales data readily available, we recommend a more comprehensive valuation report. The in-depth analysis included in this report provides the supporting data and insight to establish a price for your business with increased understanding and confidence. It also presents the valuation in a professional manner to strategic buyers.
We facilitate this valuation process working with you to gather the financials and market data as key inputs to preparing the valuation. We work closely with a business valuation company who we have worked with for years to help prepare the final report. The timeframe is typically four weeks.
The valuation report is prepared by business appraisers with one or more of these accreditations:
- ASA – American Society of Appraisers
- CBA – Institute of Business Appraisers
- ABV – Accredited in Business Valuation from the American Institute of Certified Public Accountants (AICPA)
- CVA – National Association of Certified Valuation Analysts
We are so confident in the benefit of this independent valuation report, that when we sell your business, we will reduce the commission owed by the cost of preparing the business valuation report.
Should you be looking for a business valuation for reasons other than selling your business, such as estate planning or divorce, we can refer you to companies we work with who can prepare those types of reports for you.