BUSINESS VALUATION SERVICES

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Business Value

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Value Enhancement

Business owners work hard to run their businesses, but many times they do not plan accordingly for the sale. Factors such as key metrics and proper reporting could dramatically impact the valuation or sales process.

Often the financials and supporting documentation required in due diligence need adjustment and preparation as they may not have been needed for daily operations.

Data may need to be researched to create reports or documentation to sufficiently demonstrate a company’s value.

We develop a value enhancement plan so that your business can be best represented.

Critical Factors That Impact Company Market Value

Cash Flow and Profitability

A healthy business has adjusted net profit margins of 15%+ before 'owner add-backs'. This is very critical in the overall valuation of the business.

Client Diversification

Depending on a single customer for more than 20% of your revenue leads to higher risk in a company’s stability.

Revenue Growth

Increasing revenue growth year over year is vital. More than 20% revenue growth is outstanding, 10% is higher than average, 5 - 10% is average, 3-5% is acceptable, and less than 3% is concerning.

Recurring Revenue

Both strategic and financial buyers put a valuation premium on reoccurring revenue because of the regular, predictable income stream it provides.

Properly Structured Balance Sheet

Having a clean balance sheet is important to a buyer: working capital, minimal receivables (less than 30 days outstanding), good relationship of accounts receivables and payables, a healthy mix of short and long-term debt.

Management Team Depth and Transferable Process

The business must be transferable and not completely dependent on the owner to operate successfully. This is true for sales, operations, client support, and strategy. There must be a scalable and repeatable process the new owner can assume.

WE'RE HERE FOR YOUR SELLING PROCESS

Complimentary Business Valuation

In order to receive the highest value for your business, you need to prepare well in advance.

A business valuation not only shows what your company is worth, but also helps you determine when is the best time to sell. You may be better off selling now, or waiting for more growth.

The Brentwood Growth professional business brokers provide free comprehensive business valuations with zero commitment.

Please contact us below to schedule a free consultation with one of our business brokers who can walk you through the full business valuation process.