I am trying to figure out what my business is worth. Can anyone tell me how to estimate what my business is worth? Can anyone refer a business broker? I think now is the time to sell if I am ever going to do it.
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We had this company perform our valuation. It's pretty extensive, and therefore costs a bit of money...
We also had this company provide a comparative valuation. It was FAR cheaper, but not nearly as in depth...
If you are selling, your buyers will probably want the more expensive one with the better reporting. Also, if the business is going to be financed, whichever bank the buyer uses will want to have a say in who values the business.
PM me if you have any specific questions.
CHris -
Tagged to follow. I’m looking for info from the other side. Buying an existing business that I’d like to get an evaluation of.Comment
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Thank you sir!Originally posted by outlook8 View PostWe had this company perform our valuation. It's pretty extensive, and therefore costs a bit of money...
We also had this company provide a comparative valuation. It was FAR cheaper, but not nearly as in depth...
If you are selling, your buyers will probably want the more expensive one with the better reporting. Also, if the business is going to be financed, whichever bank the buyer uses will want to have a say in who values the business.
PM me if you have any specific questions.
CHrisComment
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Do you have audited yearly financial statements? Have other companies in your realm sold recently? Who would be a potential buyer, an individual, competitor, PE firm, etc? A lot of times a company will be valued at X times EBITDA. 5X-7X EBITDA is pretty normal for a service or manufacturing company. There is so much that goes into pricing a company for sale but at the end of the day it is worth what someone is willing to write a check for. Best of luck with this. Selling my company many years ago was the best thing for me. It still is alive and doing very well to this day but Ive lived stress free for the past 20 years.Comment
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What I’ve seen on a couple of small businesses that were sold was the value of the assets depreciated by close to 50%. Added to the net profit. The net profit times 2.5%Plus the depreciated asset value is what I saw 2 smalller ompanies go for. Net profit was realized by actual net profit cash plus any personal deductions that you took through the business that could be realized, car expense, sporting good tickets, etc.Comment
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Avoid business brokers if you can. They'll take a big chunk of the sale and may not do much for you. If they find a buyer quickly and get you a premium price, great. But many are just there for a commission, and the only way they get a commission is if the deal closes or, worse, by just getting you an offer or contract for sale. Be very cautious before getting in bed with a business broker. Talking to your banker, lawyer, and CPA can be a much better way to sell a business. This is especially true if you're not in a hurry to sell.
You need someone experienced with business valuations. The standards can vary across industries. I can recommend Greg Scheig https://vpadvisors.com/team_member/greg-scheig and https://www.valuescopeinc.com as very reputable valuation consultants.
Are you in the telecom business by chance? If so, I know someone who can help you.Comment
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I went through this process a few years ago and would definitely suggest getting a professional involved to help you. They have large networks and many contacts in the PE world. They will get you more than what you can do alone IMO. I used Brad Romanchuk for the entire process from valuation to sale. Fees were very fair for the service they provided me.
Romanchuk & Co.
1780 Hughes Landing Blvd., Suite 565
The Woodlands, Texas 77380
(281) 719-9280Comment
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We are looking at selling our wedding venue and property and talking about this as well.Comment
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Yeah, business brokers take a huge chunk. And many of them try to lawyer up the deal when they really have no clue what they're doing. Get a valuation and then hire a lawyer to help you get it closed, with input from your CPA.Comment
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Your weed is getting out of control. Oh, and your secret location, corn is out [emoji12]Originally posted by LWD View Post
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