Checklist for Valuation

1. Start with the business –  Value Drivers:  Size, growth rate, management, niche, history –  Value Detractors:  Customer concentration Poor financials Outdated M&E Few assets Lack of agreements with employees, customers, suppliers Poor exit possibilities Small market Potential technology changes Product…

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Simplifying the Valuation

“There are many reasons for valuing an entity, and those circumstances can lead to different outcomes…For instance, a business’s value for sale on a going-concern basis will differ from its value for liquidation purposes.  It similarly makes a difference if…

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What Is a Company Worth?

This question can only be answered by addressing other related questions, specifically: Who’s asking and for what purpose? From the perspective of the owner, prospective buyers, the IRS, lenders and divorce & bankruptcy courts, the value of a business for…

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Financing Facts

There still aren’t too many ways to finance the purchase of a business. Here are the primary methods: Buyer Financing Some buyers may have the cash available to purchase the business. Some may elect to use the equity in their…

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