Do Your Own Business Valuation Part 9

Do Your Own Business Valuation - Part 9: 

Do Your Own Business Valuation Series Designed to Help Small Business Owners Do Their Own Business Valuation Part 9

Instructor: 

Instructor David E. Coffman CPA/ABV/CFF, CVA Accredited & Certified in Business Valuation – ABV & CVA Has Valued Hundreds of Small Businesses President & CEO of: Business Valuations & Strategies PC, Harrisburg, PA Business Advisors Group PC, Seaside Park , NJ Email: dave@bus-val-strat.com

Part 9 - Conclusion: 

Part 9Conclusion

The Three Valuation Approaches: 

Three Valuation Approaches Market Income Asset Each valuation method looks at a business from a different perspective. How do you choose the best one?

Selecting the Best Method: 

Selecting the Best Method Asset-based methods produce minimum value Eliminate any method that is lower Percentage of annual revenue method often produces highest value Earnings-based tend to produce most realistic values

Range of Values: 

Range of Values High – Percentage of annual revenue Low – Asset methods In between – Earnings-based methods This is the range of values for a company Terms & urgency determine where a business will sell within the range Low – Need to sell quickly for all cash High – Have time and are willing to finance a portion of the price

Weaknesses of a DIY Valuation: 

Weaknesses Lessons contain stripped down versions of some valuation methods Cannot match experience & training of a valuation professional Not objective Not credible to third parties

Strengths of a DIY Valuation: 

Strengths At least you will have some idea of value Better understand your business and what drives its value Better than using general rule of thumb Better than many free or low-cost services available online

Conclusion: 

Conclusion Congratulations, you now know more about business valuation than most. Use what you have learned to do your own business valuation. If you choose not to do your own then get one done professionally because – For More Information About: Doing Your Own Business Valuation – http://do-your-own-valuation.com Getting a Low-Cost Business Valuation – http://low-cost-bv.com Every Business Owner Should Know the Value of His or Her Business