Why Business Valuation
Your business is probably your most valuable asset. Knowing its value (with a business valuation) will give you a better picture of your finances and help you maximize your financial future (including your retirement –if you plan on selling).
Since many business owners haven’t had the opportunity to get a formal business valuation, they overestimate the value of their business (typically by 50% to 200%). Now you can find out what your business is worth without spending thousands of dollars or waiting weeks.
Click Video to see “Why I Need a Business Valuation”
What Kind of Business Valuation Do You Need?
Formal Valuation
Anytime there is litigation, or the IRS is involved, or you need a PRECISE number that can be defended–you must get a formal company valuation done by a certified professional valuator. A formal business valuation typically costs about $5,000 to $10,000, can take weeks to complete, and requires extensive data gathered by the business owner and the accountant.
Ballpark Valuation
There are many circumstances that do NOT require a formal company valuation. A ballpark business valuation provides a reasonable estimate that will get you within the “range” of your business value. It can be valuable for the following occasions:
- When you want to understand how strong your business operations are and how your decisions are impacting your business value (EXTREMELY important!)
- When you need to raise new capital or obtain loans
- Wish to change the structure of your company
- Need to consider a company acquisition
- Plan a tax strategy
- Develop an estate plan
- Purchase life insurance or buy/sell insurance for the business
- Plan an exit strategy and expect to sell all or part of your company
The Best Thing – Fast and easy!
Our business valuation:
- Can be done in less than an hour – online, in person or by phone
- Uses company and market information you already know (you won’t need to compile years of financials)
- You get a detailed 30+ page report
- We can review it with you by phone or in person to explain any details and answer questions
- It will show if you are ok, or if you may have a shortfall in assets
- If a shortfall, we are happy to discuss options to make up the difference (retirement, estate planning, buy/sell funding, etc)
How Good Is It?
It is a ballpark estimate that uses a practical, market-based approach.
- The single best indicator of what a business could sell for is what similar businesses have already sold for.
- Calculations are based on comparable sales from a list of over 40,000 sold businesses. It’s a similar approach used by the Multiple Listing Service (MLS)® used in real estate–but for businesses.
- Uses comparable transactions combined with eight (8) market-based factors:
- Basic Method, Asset Value, Capitalization, Critical Factor, Debt Capacity, Industry Method, Comparable Transactions, and Weighted Factors.
- Includes ZERO complex, theoretical or confusing financial analysis.
- Generates a reasonable value within a simple to understand (yet detailed) report.
Testimonial
“In less than 40 minutes, a business owner gets a great general idea about what his business is worth”
What Next?
Call us at 248-684-5353 or complete the contact form below to schedule a valuation of your business.
Click the Business Valuation Dashboard to the right for a VERY high level valuation (takes about two minutes to complete). Your actual valuation that I would do with you contains a lot more information–including a 30+ page report.
Talk soon!
John Hirzel
President
john@stratusfinancial.com
248-684-5353
We also service the following cities: Detroit, West Bloomfield, Rochester, Beverly Hills.
Click the image above to view a Dashboard. Complete the basic 2 min info for a VERY high level valuation. The detailed review will be conducted one-on-one.
