Business Valuation
Getting a qualified valuation
Only a Certified Business Valuator (CBV) can provide an official valuation and that can cost between $5,000 and $25,000 depending on the complexity and time taken for the valuation. M&A Network uses many of the same standard tools and similar transactions to educate the seller as to what needs to be considered and what to expect from the sale.
We support any buyer or seller using a CBV but ultimately a business is worth what a buyer will pay for it - too high or low an expectation of value can adversely impact the sale process.
Setting Value
There are many standards of value, common ones being:
- Book value
- Fair market value
- Liquidation value
- Investment value
There are many ways of estimating a fair price, and it is not uncommon to value a business through alternate methods to establish a fair and reasonable expectation.
In the end…
At M&A Network, we consider a realistic assessment of value as being an essential part of the process. It is also essential that the ultimate sale of a business is fair to both the seller and the buyer, and permits financing options, if required. If the process is not a WIN/WIN situation for all parties concerned the transaction will rarely close.
M&A Network works with its clients and outside partners to establish an estimated upper and lower range for the business. There may be a nominal fee charged for this service. Any estimate of value fee is non refundable but will be credited to any success fees due to M&A Network at the time of any closing.
M&A Network is your complete business service provider. |