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Delaware
Valley Machinery & Equipment Appraisers, LLC (DVMEA)
can
provide a comprehensive business valuation report that is
invaluable in selling your business, to insure the proper
selling price is placed on the business, and also in the
ongoing operation of your business. For businesses with
sales in excess of $500,000, it is strongly recommended that a
business valuation be prepared every three
years.
The
purpose of a business valuation:
- Sell
your business at the Fair Market Value.
- Provide
a lender with Fair Market Value information for a business
loan.
- Plan
for a merger, acquisition or stock
offering.
- Develop
an estate plan or tax plan to protect your
wealth.
- Transfer
of the business into a trust or create a succession
plan.
- Determine
the value of assets and liabilities for a divorce
settlement.
- Assist
attorneys in litigation.
- Settlement
of an insurance clam.
- Set up
an Employee Stock Ownership (ESOP)
- Change
in ownership within the business
Whatever
its purpose, a valuation can play a key role in helping you
achieve your financial goals. If you are selling
your business, an independent third party assessment is
absolutely required for the buyer of your business to qualify
for a third party loan.
It will insure your business is listed at a fair price
to maximize value to the owner, while allowing the closing of
the business to occur rapidly.
It is critical to determine the
purpose of the valuation. This determination shapes the choice
of valuation method(s) to apply, because different approaches
and concepts may be more appropriate for different
purposes.
Most business owners use tax
returns or financial statements prepared for tax purposes as
the basis for the financial presentation of their business. As
a result, the market value of assets is not reflected because
of depreciation or acceptable deductions that are written off
for tax purposes.
While this may be good for tax
purposes, tax return financials do not reflect years of hard
work in accumulating business assets. The business goodwill or
intangible value, which represents a major component of what
the business is worth in many cases, is not a consideration
for income tax purposes and, therefore, not addressed in
financial statements for tax purposes.
For a business to grow and expand
in today's market, capital and financing are essential. The
financial presentation reflecting what the business is worth
can be a powerful tool in dealing with financial institutions,
suppliers, and customers.
A
Business valuation is essential when the owner is ready to
consider selling the business. Business
brokers
have consistently produced higher prices and smoother sales
when a RWS valuation report is presented as part of the
business-offering package.
DVMEA
works directly with certified valuation analysts.
Together, with direct input from the seller (or owner), we
consider the age of the business, client base, goodwill,
competitive advantage, market position, and other intangible
factors. Using a detailed and disciplined approach, and
a proprietary questionnaire developed over the last twenty
years, the company's critical information is professionally
packaged. The goal is to have a complete understanding
of the factors that will influence, and maximize the price of
your company.
Brokers
and Intermediaries report their closed deals to the
analysts resulting in an unsurpassed database of private
transactions. Since we monitor thousands of
valuations each year, the business owner can be assured that
the opinion presented by DVMEA reflects the most current
market trends for similar businesses.
Unique
to our reports is the "Owners Justification of Purchase
Price". This analysis looks at the price of the company
from a buyer's point of view. The report justifies for
the business buyer that the recommended price of the business
is fair and to the seller that the business is priced to
obtain the maximum value.
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