Valuations

A professional valuation of the business is paramount whether planning the sale or purchase of a business, developing estate or tax planning strategies, considering a spin-off or management buyout, or for any other reason. A business valuation analyzes all aspects of the business including earnings, profit potential, asset values, loss carry-forwards, off balance sheet assets and lease values, and the particular industry. There are virtually dozens, if not hundreds, of components that affect the ultimate value of a business.

Do not confuse a business valuation with an asset appraisal, either real estate or equipment. A business valuation is much broader in scope and takes into consideration many hidden and non tangible items as well as business conditions.

When buying or selling a business, knowing the true value of the business greatly impacts the negotiations. Without this valuable information, either a buyer or seller may under- price or over-price the business based on emotional feelings versus factual information.

Amvest is a member of the Institute of Business Appraisers, Inc.