{"id":855,"date":"2020-07-21T00:55:25","date_gmt":"2020-07-21T00:55:25","guid":{"rendered":"https:\/\/nexusbusinessassociates.com\/site\/?page_id=855"},"modified":"2020-07-22T12:11:56","modified_gmt":"2020-07-22T16:11:56","slug":"business-valuation","status":"publish","type":"page","link":"https:\/\/nexusbusinessassociates.com\/site\/business-valuation\/","title":{"rendered":"Business Valuation"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”Page Title Section” _builder_version=”3.29.3″ use_background_color_gradient=”on” background_color_gradient_start=”#313e47″ background_color_gradient_end=”rgba(49,62,71,0.5)” background_color_gradient_overlays_image=”on” background_image=”https:\/\/nexusbusinessassociates.com\/site\/wp-content\/uploads\/2019\/09\/65429225_m.jpg” custom_padding=”120px||120px|”][et_pb_row admin_label=”Page Title Area” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Page Title” _builder_version=”4.4.5″ text_font=”||||||||” text_font_size=”18px” text_line_height=”2em” link_font=”||||||||” ul_font=”||||||||” ol_font=”||||||||” quote_font=”||||||||” header_font=”Prata||||||||” header_font_size=”60px” header_line_height=”1.6em” header_2_font=”||||||||” header_3_font=”||||||||” header_4_font=”||||||||” header_5_font=”||||||||” header_6_font=”||||||||” text_orientation=”center” background_layout=”dark” max_width=”700px” module_alignment=”center” custom_margin=”|||” animation_style=”fade” header_font_size_tablet=”40px” header_font_size_phone=”” header_font_size_last_edited=”on|tablet”]<\/p>\n

Business Valuations<\/strong><\/h1>\n

 [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.4.5″][et_pb_row column_structure=”2_3,1_3″ _builder_version=”3.29.3″][et_pb_column type=”2_3″ _builder_version=”3.29.3″][et_pb_text _builder_version=”4.4.5″]<\/p>\n

Four Main Methods for Business Valuations:<\/strong><\/h3>\n
\n
\n
\n

Capital Market Method –\u00a0<\/strong>This method utilizes the premise that the value of the business should be determined based on what astute and rational capital market investors pay to own the stock of similar guideline companies. Public companies are required to disclose detailed financial information. The capital market method is an appropriate valuation approach in cases where publicly-traded guideline companies are available. Capital market ratios of publicly-traded guideline companies are utilized to estimate the value of the subject firm.<\/p>\n

Income Approach –<\/strong>\u00a0A form of the income approach, the discounted cash flow analysis, is based on the premise that the value of the business is the present value of the future cash flow to be obtained by the owners of the business. This approach requires analysis of revenue, expense, working capital, financing, investment, capital structure, residual value and discount rate (including business risk). Another method is the direct capitalization of cash flow. This method is similar to the discounted cash flow in that a risk-adjusted discount rate is used along with a growth rate to convert a cash flow or cash flow stream to a present value.<\/p>\n

Transactional Market Method –<\/strong>\u00a0The value of the business is determined by comparing the subject firm to guideline firms that have been purchased or sold during a reasonably recent period of time. Several databases are accessed in our search for data on these transactions.<\/p>\n

Cost Approach –<\/strong>\u00a0Under this approach, the value of the subject firm\u2019s assets and liabilities are discretely determined.\u00a0 This approach generally requires an appraisal of current assets, tangible real property, tangible personal property, amortizable intangible assets, and non-amortizable intangible assets.\u00a0 The approach is often used in holding company valuations or when valuing intangible assets.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.29.3″][et_pb_image src=”https:\/\/nexusbusinessassociates.com\/site\/wp-content\/uploads\/2020\/07\/businessvalueimage2.jpg” title_text=”businessvalueimage2″ _builder_version=”4.4.5″ box_shadow_style=”preset3″][\/et_pb_image][et_pb_text _builder_version=”4.4.5″]<\/p>\n

Confidentiality<\/strong><\/h4>\n

As Business Valuers, we maintain the strictest confidentiality. \u00a0The information you provide is used solely for the purpose to value the business. We do not pass on or share your information.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.5″][et_pb_column type=”4_4″ _builder_version=”4.4.5″][et_pb_text _builder_version=”4.4.5″]<\/p>\n

Two Types of Business Valuation Reports – Valuation Opinions, & Formal Business Valuations.<\/strong><\/h3>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ _builder_version=”4.4.5″][et_pb_column type=”1_2″ _builder_version=”4.4.5″][et_pb_text _builder_version=”4.4.5″]<\/p>\n

A Valuation Opinion <\/strong>Report provides a business professional\u2019s opinion of value and it is not a formal valuation or appraisal. However, the formulas and valuation methodologies used in this report were developed by and are accepted by the business brokerage and \/ or business valuation communities. The application of these methods in the analysis documented in this report along with years of experience in evaluating such businesses, although not considered a formal valuation or appraisal, in our opinion provides a reasonable basis for estimating the likely selling \/ listing Price of a small business. The Valuation Opinion Report is prepared under a consulting engagement rather than an appraisal engagement. This report is appropriate for the purpose of Buy-Sell agreements, Exit Planning, Financial Planning or if you are acquiring or selling a business.<\/p>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.4.5″][et_pb_text _builder_version=”4.4.5″]<\/p>\n

A\u00a0 Formal Business Valuation\u00a0Report<\/strong> provides a Professional\/Certified Appraisal’s calculated of value and as such IS a formal valuation or appraisal. This is an Appraisal Engagement and is used for the full range of business valuation needs. Reorganization, Bankruptcy, Sale of the company, Transferring shares, Financial reporting, Collateralization, Securitization, Fair value accounting, Forensic analysis, Corporate planning, Management information, Taxation planning, Restructuring to name the most common.\u00a0<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.4.5″][et_pb_column type=”4_4″ _builder_version=”4.4.5″][et_pb_text _builder_version=”4.4.5″]<\/p>\n

What Type of Valuation do You Need?
\u00a0\u00a0<\/strong><\/h3>\n

If you’re a smaller company with under $2M in revenue, with typical assets, then you may just be interested in our FREE one-page Valuation Opinion.\u00a0 If you’re interesting in finding out what your business might sell for, then this is where you want to start.\u00a0 \u00a0If you’re a larger, more complicated business, we’ll provide a specific quote, just complete this short form:<\/p>\n

[\/et_pb_text][et_pb_text _builder_version=”4.4.5″]<\/p>\n