Valuation and Appraisals
I will give you an opinion of value based on my 10 years experience in the South Florida marketplace.
Business valuations are based on assets, inventory at Seller’s cost and “Owner’s Benefit” (or discretionary cash flow), which is comprised of the corporation’s net income plus owner’s salary, interest expense, depreciation, discretionary expenses and other personal “perks” paid by the business. The “goodwill” of your business, the value above and beyond the physical asset value, is generally based on a multiple of Owner’s Benefit that varies according to business type and industry.
A third-party independent appraisal can take a lot of the guesswork and negotiation out of selling your business. Also, many SBA lenders now require an independent appraisal as part of their underwriting process in order to approve the loan. Contact me for more information.