Friday, March 12, 2010

Business Valuations

Featured Articles

Today's Business Buyer: A Profile

Today's independent business marketplace attracts a wide variety of buyers eager for a piece of ownership action. Buyers of small businesses are most likely replacing lost jobs or searching for a happier alternative to corporate life. Buyers of mid-sized and large operations are, typically, private investment companies seeking businesses to build and eventually sell for a profit.

Rating Today's Business Buyers

Once the decision to sell has been made, the business owner should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying them have also become more divergent and complex.

Selling a Business: How Long Does It Take?

Why does it take so long to sell a business? Price and terms are the biggest reasons.

Buying a Franchise: What It's Worth to You

If you are considering entering the world of franchising, an important consideration is assessing the value of the business. All of the following factors either affect or help determine valuations of typical franchise operations.

12 Ways to Increase the Value of Your Company

Keep in mind that the best time to consider selling is when business is good, the business is running profitably, and many of the above “value-adders” are in place.

What Is a Company Worth?

This question can only be answered by addressing other related questions, specifically: Who’s asking and for what purpose?

Today's Business Buyer

For a business to sell, there has to be a seller - and a buyer. The buyer of today is a bit different than the one of yesterday. Today's buyer is not a risk-taker, is concerned about the financials, and seems to be overly concerned about price. Unfortunately, buyers have to understand that they cannot buy someone else's financial statements.

What Do Buyers Really Want to Know?

Before answering the question, it makes sense to first ask why people want to be in business for themselves. What are their motives? There have been many surveys addressing this question. The words may be different, but the idea behind them and the order in which they are listed are almost always the same.

Why Do Deals Fall Apart?

In many cases, the buyer and seller reach a tentative agreement on the sale of the business, only to have it fall apart. There are reasons this happens, and, once understood, many of the worst deal-smashers can be avoided.

Dispelling a Buyer Myth

Most prospective business buyers really don't know from the outset the exact type of business they want to buy. Experienced business brokers and intermediaries know that many business buyers end up with what is sometimes a far cry from what first captured their imagination.

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phone: 914-738-9350
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Business Valuations

Synergy Business Brokers can provide you with a professional appraisal of the value of your business. You may need a business valuation for a number of reasons including:

• Selling your Business
• Partner disputes or buyouts
• Divorce

• Buying a business
• Litigation
• Deciding whether to sell
• Second opinion

• Expert witness for a trial

• Estates settlement and or Wills

We pride ourselves on delivering clear concise valuations that are affordable and timely. We can also represent you in court if you need expert witness testimony. Synergy Business Brokers will evaluate financial information and take into account your lease (if any), prospects for growth, current market conditions, asset analysis, concentration of customers, selling price of comparable businesses and other factors that we will discuss with you. We have experience evaluating hundreds of businesses and use this knowledge to make a determination of the value of your business. Our involvement with the sale of businesses provides us with additional insights into valuing a business compared with valuation firms that only deal in the theory of valuations.

In reviewing your income statement it may need to be adjusted to better show the pre-tax earnings that a business can generate. This is necessary since an income statement is prepared for tax purposes and in general will attempt to lower taxable earnings. For example, a business may show a non-cash expense such as depreciation, in excess of what would be necessary for a reasonable replacement fund. Also, an owner may be receiving a salary that is either too high or low for the work that is being performed. The owner may have benefits from the business that are listed as company expenses such as personal health insurance, company cars, etc. These cases will require adjustment to the income that the owner is receiving to more accurately reflect what the owner is making. Another adjustment may be required for interest expenses since a new owner will have a different debt and equity structure than the current owner. Other adjustments are for expense items which are not necessarily important for business operations but considered important to the owner as additional benefits or compensation. We will evaluate this information compared to other similar business sales and take into account the current market to provide you with an accurate valuation report.

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