Business Valuations

Determining the value of your business is an important question whether you are thinking of selling your business now or in the future.  Business valuation can be calculated a number of ways, however when it comes to selling your business, it is the value deemed by buyers that counts.

Business Valuation varies by Buyer - Chart

Business Values by Buyers – Business was sold to Buyer 5

BMI’s advisors have extensive experience, access to public and private transaction data and they are in the market everyday talking to buyers.  This market knowledge serves as the foundation for our ability to discern business value in todays market.

BMI provides a complementary opinion of business value based on an informal review of your business. We work with hundreds of business owners and buyers and have a good understanding of the business sale market. In addition, we invest in premium information services that provide hard to obtain valuation data on the sale of privately held businesses.

Determining Business Value – More than Numbers

Business valuations are determined by a number of factors. The number one determinant is income or owners cash flow. This is not the income showing on a tax return but rather comes from an understanding of the true income potential. We will discuss the various components with you to determine this crucial number. Other factors can heavily influence business value such as personnel depth, sales trends, industry, customer concentrations, intellectual property and other unique characteristics of your business. Applying our market knowledge to these factors, we will provide a probable range of values you could expect to see in a business for sale transaction.

The advantage of this complementary assessment of business value is that it allows business owners to focus on key decisions. Decisions such as the timing of a sale and what areas of a business may need some improvement to maximize value.

Why Provide a Free Business Valuation?

Selling a business can be a big decision and business owners need to have this information to make an informed and thoughtful decision. The business sale process will be smoother and more productive if we have a common understanding of your business value. Of course, this free business valuation is provided with no expectations on the part of BMI. We enjoy talking with business owners and welcome the chance to speak with you. Contact Tom or Dave for your free opinion of business value or a simple confidential conversation (610-777-7029).

Confidential and Complimentary

We understand confidentiality is very important. Any discussions with us concerning your business valuation are kept strictly confidential. The information gathered or shared is used only for providing to you a range of probable business values in a business sale transaction.

Formal Business Appraisal

There are times when a formal business appraisal is needed. Often these relate to issues other than selling a business. BMI can provide a formal business appraisal appropriate for your situation. Email or Call us at 610-777-7029 to discuss your needs.