Many small business owners have the skills to conduct a quick and easy market valuation all by themselves. Our Do-It-Yourself Kit can help. Our information packed DIY Kit shows you how to conduct a Market Value ysis of a small business with annual revenues less than $1 Million.
These days there are scammers everywhere. I’ve heard horror stories from clients that have paid for valuations that weren’t worth the paper they were printed on. Some paid over $30,000 for “valuations” from slick-talking guys that made big promises at fancy seminars. Others paid $2,500 or more for “appraisals” that looked like form letters. The common theme among most valuations conducted for small businesses is that they cost a bunch of money and take a bunch of time.
The reality is that most complex valuation methods are usually overkill when figuring out what the market will pay for your small business.
I’ve worked with dozens of business owners just like you over the past few years to help bring their businesses to market. I used this experience to create an informative guidebook that will help you figure out realistic range of value for your business. Granted, your DIY ysis will not hold up in court and will not be 100 pages long. In fact, we can’t even call it a “valuation.”
But, it will give you and idea of the price, terms and time to sell that you’d see if you brought your business to market today.
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The Sellers Discretionary Earnings calculator helps you uncover hidden earnings in your business and show buyers how much money your business really generates.
If you want to get a reasonable price and have buyers take you seriously when selling your small business, you will need written proof of your business performance. The realities of small business earnings are nothing like what you learned in business school. This is accounting in its most basic form. What you need to remember is that small business owners prepare their books and tax returns to show the lowest reasonable net income in order to minimize taxes. The small business owner takes advantage of all sorts of write-offs that make the business appear less profitable than it actually is, so he can keep more of his hard-earned money every year. Delivered in .xlsx and PDF format.
An et based value involves listing all of your ets, deciding on their fair market value, and adding them together to get a total value. Even if you don’t intend to use an et based value to determine an asking price, it’s a good idea to do this ysis. One, it will give you an idea…