 |
FAQs Some FAQ's About Business Valuations: Why
should I use a business valuation analyst?
Why should I use a business valuation analyst? Establishing an accurate assessment of value for any business, enterprise or intangible asset requires in-depth, specialized knowledge. Business valuation professionals with practical experience as Certified Public Accountants (CPAs) are well prepared to meet the client's exacting needs. Their varied experience and training in valuation theory and application, litigation support, accounting, tax, auditing, finance, insurance, economics and investments prepare the business valuation analyst to provide the client with a comprehensive analysis and a competent valuation.
How much is my business worth? Value is based on future income streams that a buyer will receive based on competitive rates of return for a similar type of investment. The rate of return is based on the risks involved and the return the buyer expects to make over time.
What are the factors that make up the value? Critical value components are management, company and industry outlook, market acceptance and size and relative market share potential. Other factors include financial condition, cash flow, profitability and the company's strengths, weaknesses, opportunities and threats to its existence, size and other specific company risks.
How is the value of my business determined? Numbers,
facts, figures, balance sheets and financial statements simply are not
adequate to accurately measure the true fair market value of an asset.
Many different approaches and methods of valuation analysis should be
reviewed and selectively matched to the asset being valued. Selecting
the most appropriate methodology, supported by various types of analysis,
including sophisticated mathematical calculations, ratio analysis, industry
comparisons, economic and market analysis, relative business risk assessment
and many other considerations is required to achieve a competent valuation. Our initial consultation is free; otherwise, cost depends on the purpose of the valuation, the size and complexity of the company, and the quality of the books, records, controls and financial statements.
A valuation usually takes three to ten days depending upon the purpose of the assessment.
You
will need to provide all contracts, leases, agreements, commitments, intellectual
property, and other intangible assets, as well as all contingencies including
any pending litigation. Also requisite are company background, operations,
economic outlook for industry, information on company, management, market
share, strengths, weaknesses and outside opportunities and threats that
come from your competition on the local regional or national/international
economy. Additionally, you will need to provide five year's of historical
financial statements and corporate tax returns and three year's of projected
financial statements.
Usually, the right time to sell is when the many important components that enhance value are in place. These elements are listed in the above question "What are the factors that make up value?"
How can I contact Value Added Advisors? Value
Added Advisors is located at: Phone: (310) 839-3930
Fax: (310) 839-3776
|
Hosted and
Maintained by:  |
©
Value Added Advisors, LLC - All Rights Reserved.
|