Business Valuations

Whether you are buying or selling a business, it’s critically important to know your company’s true value.  Our valuation expertise and knowledge of the regional marketplace, along with our strategic alliances with nationally recognized, independent, third party valuation firms, allows us to deliver a full range of cost-effective business valuation services.

Business valuations are necessary for a variety of reasons, some are:

  • business sale
  • merger or acquisition
  • estate tax
  • divorce
  • buy out of existing shareholders
  • buy/sell life insurance
  • death, disability, or retirement of a shareholder
  • bank lending
  • Employee Stock Ownership Plans
  • gift taxes
  • litigation

Colonial Business Brokerage offers the following business valuation services:

Comparative Value Analysis

The Comparative Value Analysis, often referred to as a Broker’s Opinion of Value, is an in-house restricted use report, utilized to determine the Most Probable Selling Price (MPSP) of businesses with annual revenues up to $2,500,000.  The basis of the report is the Direct Data Market Method, which primarily uses discretionary cash flow multiples and comparable sales of like companies.  The report is intended for asset sales only and assumes that the business will be sold free and clear of any liabilities and debt.  The conclusion of the Comparative Value Analysis states the Most Probable Selling Price (MPSP) on a one page document.

Selling Price Valuation Analysis

The Selling Price Valuation Analysis is an in-house, restricted use report, utilized to determine the Most Probable Selling Price (MPSP) of businesses with annual revenues up to $5,000,000.  This report uses multiple price evaluation methods including; Market Method, Multiple of Discretionary Earnings Method, and Buyers Test Method.  The report is typically intended for asset sales only.  The report considers historical and current financial performance and assumes that the business will be sold free and clear of any liabilities and debt.  The conclusion of the Selling Price Valuation Analysis comes in the form of a report, typically in excess of 15 pages.

Calculation of Value

The Calculation of Valuation is an independent third party restricted use business valuation intended for businesses with sales revenue between $2,500,000 and $10,000,000.  The report provides a detailed review of all aspects that were considered in determining the final valuation conclusion.  The bulk of the report is financial analysis and the valuation conclusion is supported in detail.  In addition to reviewing the company’s historical and projected earnings, the report also contains a detailed review of the balance sheet.  The conclusion of the Calculation of Value comes in the form of a report, typically in excess of 30 pages.

Complete Appraisal-Summary Report

The Complete Appraisal-Summary Report is an independent third party restricted use comprehensive business valuation used for transactional purposes. This valuation is intended for lower middle market business with annual revenues in excess of $10,000,000, strategic acquisitions of niche businesses, and businesses with significant growth expected in the future. The basis of the valuation is focused on future earnings and the selection of guideline companies comes from both the private and public markets. The conclusion of this Appraisal comes in the form of a report which can exceed 50 pages depending on the information that is used to support the conclusion.

Complete Appraisal-Self Contained Report

The Complete Appraisal-Self Contained Report is an independent third party USPAP governed valuation, developed for litigation focusing on US Court Reviews, Cited Court Precedents, and in-depth analysis and research of minority and marketability discounts.  This valuation is intended for Estate Tax, Gift Tax, ESOP’s, Divorce, and any situation requiring litigation support.  Uniform Standards of Professional Appraisal Practice (USPAP) and American Society of Appraisers (ASA) address this report as a “Comprehensive, Written Business Valuation Report”.  The Institute of Business Appraisers (IBA) addresses this report as a “Formal Written Report”.  This report is completely customized and can exceed 100 pages depending on the information that is used to support the conclusion.

 

Please call or eail us for pricing for any of our Valuation Services.  

Colonial Business Brokers – info@colonialbb.com – (443) 982-7332

Business Valuations