| 970-221-9950 admin@msbba.com Seller Registration | Buyer Registration Valuation Home / Valuation BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJUNE 24, 2015 SELLER ARTICLES, VALUATION0 COMMENTS How Does Your Business Compare? When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, one can take a look and make a “ballpark” judgment on each. How does your company look? Value Driver Low Medium High Business Type Little Demand Some Demand High Demand Business Growth Low Steady High & Steady Market Share Small Steady Growth... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJUNE 24, 2015 SELLER ARTICLES, VALUATION0 COMMENTS How Does Your Business Compare? When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, one can take a look and make a “ballpark” judgment on each. How does your company look? Value Driver Low Medium High Business Type Little Demand Some Demand High Demand Business Growth Low Steady High & Steady Market Share Small Steady Growth Large... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSAPRIL 29, 2015 SELLER ARTICLES, VALUATION0 COMMENTS Valuing the Business: Some Difficult Issues Business valuations are almost always difficult and often complex. A valuation is also frequently subject to the judgment of the person conducting it. In addition, the person conducting the valuation must assume that the information furnished to him or her is accurate. Here are some issues that must be considered when arriving at a value for the business: Product Diversity – Firms with just a... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSMARCH 12, 2015 BLOG, BUYER ARTICLES, SELLER ARTICLES, VALUATION0 COMMENTS Two Similar Companies ~ Big Difference in Value Consider two different companies in virtually the same industry. Both companies have an EBITDA of $6 million – but, they have very different valuations. One is valued at five times EBITDA, pricing it at $30 million. The other is valued at seven times EBITDA, making it $42 million. What’s the difference? One can look at the usual checklist for the answer, such as: The Market... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJULY 21, 2014 BUYER ARTICLES, VALUATION0 COMMENTS Three Basic Factors of Earnings Two businesses for sale could report the same numeric value for “earnings” and yet be far from equal. Three factors of earnings are listed below that tell more about the earnings than just the number. 1. Quality of earnings Quality of earnings measures whether the earnings are padded with a lot of “add backs” or one-time events, such as a sale of real estate, resulting in an... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJUNE 4, 2014 BUYER FAQ, VALUATION0 COMMENTS What is the Value of Your Business? It All Depends. The initial response to the question in the title really should be: “Why do you want to know the value of your business?” This response is not intended to be flippant, but is a question that really needs to be answered. Does an owner need to know for estate purposes? Does the bank want to know for lending purposes? Is the owner entertaining bringing in a partner or partners? Is the owner... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSMAY 5, 2014 VALUATION0 COMMENTS Creating Value in Privately Held Companies “As shocking as it may sound, I believe that most owners of middle market private companies do not really know the value of their company and what it takes to create greater value in their company … Oh sure, the owner tracks sales and earnings on a regular basis, but there is much more to creating company value than just sales and earnings” Russ Robb, Editor, M&A Today Creating value... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJULY 1, 2013 SELLER ARTICLES, VALUATION0 COMMENTS What Would Your Business Sell For? There is the old anecdote about the immigrant who opened his own business in the United States. Like many small business owners, he had his own bookkeeping system. He kept his accounts payable in a cigar box on the left side of his cash register, his daily receipts – cash and credit card receipts – in the cash register, and his invoices and paid bills in a cigar box on the right side of his... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJUNE 27, 2012 VALUATION0 COMMENTS Checklist for Valuation 1. Start with the business – Value Drivers: Size, growth rate, management, niche, history – Value Detractors: Customer concentration Poor financials Outdated M&E Few assets Lack of agreements with employees, customers, suppliers Poor exit possibilities Small market Potential technology changes Product or service very price sensitive 2. Financial analysis: Market Value... Read More BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORSJUNE 27, 2012 VALUATION0 COMMENTS Simplifying the Valuation “There are many reasons for valuing an entity, and those circumstances can lead to different outcomes…For instance, a business’s value for sale on a going-concern basis will differ from its value for liquidation purposes. It similarly makes a difference if the valuation is for an orderly liquidation as opposed to a forced one. For example, the value of a company for estate-tax purposes... Read More 1 2 Recent Posts Current Insights Regarding the Labor Shortage BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORS DECEMBER 4, 2021 BizBuySell’s Insight Report is filled with key... How to Purchase a Business Without Collateral BY MOUNTAIN SATES BUSINESS BROKERS & ADVISORS NOVEMBER 20, 2021 Many prospective business owners believe that... 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