Business Valuation

1. www.buysellbizfl.com How Much is a Business Worth? What your business is worth to the IRS is a different question than what is its potential sales value. There is an old joke in real estate as follows: Tampa Business Broker Dave DeCamella It is not so different with your business, when it’s time to put it on the market. Unless we have prepared it correctly. I work with my sellers closely, and confidentially, to produce the accurate value of the business in as fair a way as possible. It helps no-one to price the enterprise too high – the business will simply sit there and everyone will get discouraged. Too low a price is a problem too, because potential buyers (and their brokers) tend to be sophisticated nowadays and know full well what a business is worth. When it has been priced too low, it makes those buyers suspicious of hidden problems that will likely turn into expensive future “surprises”. Documents Needed for Business Valuation We need to gather the following docs: I can help you. 1.Three years of business tax returns and/or CPA generated statements. 2.Current interim P&L and Balance Sheet. 3.Questionnaire – completed from the point of view of the business prior to the sale/refinance. 4.Breakdown of each owner’s duties, and compensation for all periods above. 5.Purchase Agreement / Deal Structure / Letter of Intent, including all supplements and amendments. 6.Building lease or ownership information (fair market rent, # of sq ft, lease expiration). 7.Business spreads/cash flow analysis including all cash flow adjustments, add-backs or non-recurring items for all periods above. 8.If Available: Past business plans, business valuations and/or business reviews (if applicable). 9.If available: Marketing materials, photos, or material you deem beneficial to understanding your business. www.buysellbizfl.com