One of the most critical aspects of your business is knowing its value.

Without knowing the true value of your business you will not know:

  • How profitable the business is
  • If buy-sell and other agreements are properly funded
  • A fair market price

A proper business valuation can do all of this. By a review of the past several years tax documents and other basic business information we can create a detailed 29 page Business Valuation.

This information is necessary if and when you:

  • Apply for Life Insurance, whether its for the business or personal
  • Determining the proper coverage for Property and Casualty Insurance
  • Apply for a loan/line of credit/pandemic relief
  • Expand your operations
  • Pass the business on to the next generation
  • Sell your business

How we value your business:

  • Comprehensive analysis of Business supporting multiple business & personal planning issues
  • 4 Values – Asset value, Equity value, Enterprise value, Liquidation value
  • Formula Methods 
    1. Objective Factors with allowances for special circumstances
    2. Capitalization of Earnings (10X average earnings over last 5 years)
    3. Certified appraisal by Independent Service, Combination of Methods
  • IRS accepted Valuation Factors - History & nature of Business, Degree of Business risk involved, State of national economy & specific industry, Business financials (Balance sheet, Tax returns)
  • Balance sheet determines liquidity, working capital, long term indebtedness, net worth & book value
  • Book Value / Assets minus Liabilities divided by number of outstanding shares
  • Earning capacity of Business / P&L for prior 3 years, Net profit after tax, Payments of dividends on Preferred Stock
  • Dividend paying capacity / Closely held corporations avoid double taxation of dividends by paying salaries, bonuses & benefits
  • Goodwill / IRS formula Excess of net earnings@ verified return on net tangible assets
  • Previous sales of stock
  • Fair market value of Publicly traded stock of comparable businesses