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Blue Skies

Business Valuation

The art and science of establishing value

UNDERSTANDING BUSINESS VALUE

VALUATION
SOLUTIONS

If you're thinking of buying or selling a business we can help determine what it's worth.

 

We also perform third party business valuations and appraisals for:

  • Financing

  • Insurable Value

  • Litigation Support


  • Liquidation or Reorganization

  • Strategic Planning

VALUE
COMPONENTS

There are 5 key components of business value:

  1. Market value of assets.

  2. Historical trends of revenues, expenses, and cash flows.

  3. The value of rights, privileges, and knowledge.

  4. Estimated stability in the future.

  5. Esthetic appeal.

NET
MULTIPLE

Ninety-eight percent of small businesses sell for between 1 and 5 years net income (1-5x). And about 70% sell for 2-3x net.

At the end of the day, business value is the price a company’s tangible and intangible assets should bring in a competitive and open market, so the price, risk and returns are evaluated against other investments.

If you want to get real nerdy with us -- and also read about how business size and industry affect valuation -- check out our in depth article below.

 

And if you'd like to speak with us directly, give us a ring or shoot us an email at info@quigleypumpernickel.com.

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