If your objective-to-value is to determine what a business is worth in the event of a third-party sale, your need is based in the “market approach” to value. When referring to “the market” we are referring to the types of people who buy businesses — individual, financial, and strategic.
Within “the market,” each buyer type has a slightly different approach-to-value. Most buyers configure valuation based on a multiple of adjusted earnings. The calculation of adjusted earnings can generally be classified as one of two formulas: SDE (sellers’ discretionary earnings) or EBITDA (earnings before interest, taxes, depreciation, and amortization).
Premier Business Brokers offers 3 tiers of valuation services, all catered to meet your immediate and future needs. A brief description of the products we offer are listed below.
Market Assessment
The Market Assessment is a complimentary product that is available to business owners who are currently considering a sale of their company.
Market Valuation
The Market Valuation product provides a higher degree of detail than the Market Assessment. It is not only a trusted method to determine the valuation of a company but it also provides strategic planning metrics that are measurable over any given period.
Certified Appraisal (CVA)
The Certified Appraisal product is the highest standard of any business valuation service. Our designated CVA specialist provides a proven process that is governed by the NACVA.
| Results | Market Assessment | Market Valuation | Certified Appraisal (CVA) |
|---|---|---|---|
| Adjusted Earnings Recast | |||
| Industry Specific Sales Comparisons | |||
| Transaction Sale Comparisons | |||
| Full Review of Secondary Drivers | |||
| Exit Strategy Measurements | |||
| Continuous KPI Tracking | |||
| Multi Model Approach | |||
| NACVA Aligned Practices | |||
| Court Procedure Qualified | |||
| SBA Qualified |
The valuation approach to any business is not a linear process. The above-mentioned considerations are designed to simply outline the variables associated with performing a business valuation. Please contact our office for more information.