Business Valuation
Every smart business person knows the importance of being able to present a fair and accurate accounting of their businesses' value. It is particularly important when attempting to sell a business.
This business valuation document is the single most useful piece of financial information about any business. It has many purposes and can be used to:
- Prove the Fair Market Value of your business
- Provide Information to lending institutions for a business loan
- Validate information for a Merger, Acquisition or Stock Offering
- Create a succession plan or a trust
- Develop an estate plan or tax plan to protect wealth
- To determine the value of assets and liabilities
- For the creation of an Employee Stock Ownership Plan (ESOP)
To know why it's so important to have a business valuation you must understand that the book value reflected on the financial statements of a business usually differs vastly from its true market value.
Without a new business valuation, a business owner must be prepared to defend his opinion of value. For instance, any potential buyer will place little credibility in a value arrived at by an owners accountant. Therefore, a properly prepared business valuation report by a business valuation expert would become the best tool usable to obtain maximum selling price.
When you work with a VR Intermediary to create a valuation report, the goal is a simple one, the creation of an accurate and comprehensive document that will stand up to scrutiny.
For larger businesses, VR has established relationships in place with accredited firms whose business valuations are accepted by 95% of all SBA lenders in the country. Using third party business valuations make purchase price a small part of negotiations and puts the emphasis on agreements to other terms & conditions of the transaction. VR sells 86% of all businesses that agree to a third party independent business valuation.
VR's depth of experience coupled with a vast knowledge of business valuations will result in an expert opinion of value, delivered in a responsive, timely and efficient manner. VR has valued and sold virtually every type of business.
In one year alone our Network of International Business Intermediaries participated in the sale of businesses with a total value of approximately half a billion dollars. This wide range of experience provides VR with an unparalleled proprietary knowledge of real market values and emerging market trends, all available in a private computerized data bank accessed only by VR Intermediaries.
Contact us for more information.