Business valuations vary greatly depending on the industry. Luckily our qualified professionals help to value and prepare your business for an eventual sale. Our value-added services include working directly with owners and management to substantially increase the value of your business in a short period of time allowing you to walk away with a higher exit multiple. This often means expert consulting in everything from finance and marketing to business development and logistics. The valuation is viewed through the lens of an entrepreneur, not simply a careless consultant.
At Sunbelt Business Brokers of Las Vegas we are able to complete our own detailed business valuation using proprietary business valuation software, by analyzing the comparable sales within the specific industry and through a detailed analysis of the financial statements. We also work with several nationally recognized valuation companies who can handle anything from a value analysis to an IRS Revenue Ruling 59-60. These services can be very helpful in determining an unbiased opinion of value for a buyer, seller or third party.
1. $1,500.00 Brokers Opinion of Value:A 15-20 page in house independent opinion of value in which we use the financial and historical information to compute the value of the business in a number of ways. We then apply a weighting to each valuation to compute the most likely and probable selling price or value of the business. This entire fee is refunded and applies to any commission earned if we sell your business within 12 months. Although this is used by many parties to value their businesses it is not an appraisal and is not a USPAP report.
2. $3,000.00 Formal Valuation and Summary Report: Our in house valuation along with a complete confidential memorandum which can be used by a business owner to market their business to a specific buyer or for the buyer to help with procuring financing or in the writing of a business plan. (Normally 25-40 pages) This entire fee is refunded and applies to any commission earned if we sell your business within 12 months.
3. $4,000.00 Calculation of Value Report* : The American Institute of Certified Public Accountants (AICPA) recognizes a “Calculation of Value” also known as “Value Calculations”. A calculation of value is NOT an appraisal because the appraiser is not coming to a “conclusion of value”, but merely a “calculation of value” based on a limited amount of investigation and due diligence. Although a Calculation of Value does not meet USPAP or IBA Standards, it can be a very valuable tool for business owners or professionals by assisting in setting the sale price, with estate planning, business planning or in any matter where the parties agree that a calculation of value is acceptable..
4. $6,000.00 Complete Appraisal and Summary Report*: Although USPAP and the American Society of Appraisers address only a single format for written reports, many practitioners a “summary report”. The Institute of Business Appraisers acknowledges this report and notes that it should contain a summary of the material factors that led to its conclusions, but is usually intended by the parties] to reduce the normal appraisal burden of writing a comprehensive report, and thereby allow the client to realize some economic benefit. However, the appraiser is still required to perform materially the same investigation and analysis as would be required for a comprehensive report and maintain in his files the work papers necessary to support the conclusions stated in the letter form report. This summary reports are usually between 30 and 60 pages and are typically used for the following purposes: Merger or acquisition, SBA or conventional financing, Estate tax or gifting purposes and any matter where the intended users are “familiar” with the subject to be valued.
5. Starting at $7,500.00 Complete Appraisal and Self Contained Report*: This is a formal presentation of the value of a business in a self-contained written report. If a valuation has the potential to go to court, or if the report needs to be reviewed by others, such as the IRS for tax implications, this type of report explains in full detail how the value was derived. Uniform Standards of Professional Appraisal Practice (USPAP) and American Society of Appraisers (ASA) address the above as a “Comprehensive, Written Business Valuation Report”. The Institute of Business Appraisers (IBA) addresses the above as a “Formal Written Report”. Typical uses are as follows: Litigation support, Large, complex transactions, Initial implementation of an Employee Stock Ownership Plan (ESOP) or any matter where there are many “intended users
* The information used to produce the Calculation of Value or either Appraisal is compiled by Sunbelt Business Brokers. The reports are then written by one of the leading independent appraisal and business valuation firms in the United States.