Business Valuation FAQ
some questions and answers
Can't decide if a valuation is right for you? Let us address come key questions that you may have.
Note that we offer a complimentary business assessment report that estimates what your business could fetch in the market. It is not as comprehensive as our valuation report, but it could be a first step without cost or obligation.
Page FAQs:
business valuation FAQ
Question:
Why use a 3rd party valuation services
Answer:
Trust and credibility. It is as simple as that.
A buyer would question a valuation report prepared by the business owner or the owner's CPA.
That is why you should run an independent report to add credibility to the asking price. Prospective buyers looking at your business will request it.
The independent report favors neither seller or buyer. It simply looks at the financial information and recasts them back to market value using statistical models that have been developed over the past 20 years.
No other internal review will be able to offer you such analysis.
business valuation FAQ
Question:
Why should we do a valuation if we are not exiting our business?
Answer:
There are other reasons why you may complete an independent valuation of your business:
for Lending Purposes:
you may need a business loan or credit line. Many lenders require an independent valuation of your companyfor Getting Bigger:
the valuation report can help you plan for a merger, acquisition, or stock offeringfor Employees:
establishing and setting up employee stock ownership plans (ESOP)
note: we have partners within our network that can help you establish ESOPsfor Family Protection:
provide information about your estate or ownership succession planfor Settlement Claims:
determine asset/liability values for divorce or insurance settlementsfor YOU:
simply for wanting to know the worth of your company so that you can plan your exit plan for near or far future.
business valuation FAQ
Question:
What if we were to use other valuators such as our CPA, credit agencies and the like? Is this something CFOne can accept?
Answer:
Of course. As long as the company is an independent, certified third party.
That is why we recommend CFOne certified specialist.
Our recommended valuation services have been preparing business valuations for 20 years.
They have developed an extensive national database of comparable sales information from across the nation. Completing thousands of valuations each year, they have developed industry trends and pricing modules for similar businesses such as yours.
Our valuators use a detailed and disciplined approach to present your company's critical information in a summarized format that is easily understood by all parties.
business valuation FAQ
Question:
What does the valuation look like?
Answer:
The report is about 12+ pages with a back section explaining the scope of the work.
It is nicely bound and presented as a separate report or included in the Confidential Memorandum Report when business owners are preparing for a sale.
The report summaries your financial position under the following sections:
- executive valuation summary
- indicated value and financial structure
- justification of purchase
- historical financial recasting analysis
- business information summary
- other: to be determined by individual business
business valuation FAQ
Question:
How much does it cost?
Answer:
The cost of valuation services is determined on an individual basis. This will be discussed during our first consultation meeting.
However, we do offer a complimentary business assessment report that estimates what your business could fetch in the market. It is not as comprehensive as our valuation report, but it could be a first step without cost or obligation.
Give us a call or email if you would like further information:
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CFOne Advisory 1.571.306.3590 (DC) 1.804.527.1103 (Richmond) or e-mail your questions to: |
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Helpful Tools
Some helpful forms business owners:
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