Opportunities in Business does Business Valuations, for a wide variety of reasons. We do them every week-for all kinds of businesses.
Many valuations or “appraisals” are required because the owner or owners have decided to sell their business. Some are done for estate planning purposes, or because of divorce. We have completed hundreds of reports over the past 33 years.
There is an art to determining the “going concern” value of a business; there is as much art as there is science.
When we started valuing businesses over 33 years ago, there wasn’t many resources for appraisers to find data on sold businesses (small, closely held, private businesses). That has changed. Now there are sources of information on businesses that have actually sold-across the country. In fact we contribute data to these sources-like Pratt’s Stat’s, BizComps, Value Source etc., on the businesses we sell. In return, we have access to their data bases, which helps us help our clients.
It’s interesting-because we both sell businesses and do Business Valuations-to analyze the data from around the country and see the multiples of earnings, or “capitalization rates” (one factor in valuation of a business), by industry and by the size of the business sold.
Our experience is that a wide variety of factors influence the value of a business, beyond earnings (defined in a wide variety of ways by the way), and the assets included in a sale. Purchasers take a variety of factors into account beyond just the net income shown from historical financial statements.
We have an advantage-because we are part of the market-in knowing what influences value. We crunch the numbers, just like any appraiser should, but we also can analyze value in light of current market conditions and trends.
If you are considering selling your business, or need to have an appraisal done for any reason, contact us at info@oibmn.com and a qualified representative from our company will contact you.