Business Valuation

Is a Gas Station a Good Business to Buy with No Experience?

Currently, gas stations and their corresponding convenience stores are some of the most profitable businesses in the United States. Across the country, there are over 100,000 gas station/convenience stores which bring a cumulative of over $400 billion revenue each year. Since the country literally runs on gas where people have to commute to different places and goods also have to be ferried to different states, the gas station business is one whose future is quite certain. Below are some reason Read More>>

Important Elements a Buyer Needs to Consider in a Business Sale

JoAnn Lombardi VR President Experienced entrepreneurs who have bought a business before will have an advantage over a business owner who is experiencing selling their business for the first time. That being said, most buyers have a very difficult task because of the due diligence portion of the transaction is typically an area that the Read More>>

Every Business is a Risky Business

Peter King VR CEO Every business faces risks, but some companies are riskier than others. Assessing a company’s risk is an important part of estimating its value. Risk and value are inversely related. That is, the higher a company’s risk, the lower its value. Risk is a function of a company’s external threats Read More>>

Normalized Earnings Tell You How Profitable a Company Really Is

JoAnn Lombardi VR President Normalizing earnings can provide insight into a company’s history and future. Performing this step is key in valuing a business, but it’s also difficult work that involves more than merely reading the company’s financial statements. Normalizing earnings require detailed analysis as well Read More>>

Where Your Company Fits In

Peter King VR CEO Knowing where your company fits into the world of business is a must if you want to understand the dynamics of selling it. The rules that govern the sale of public companies like Ford, Microsoft, and General Electric are radically different from the rules that control the sale of closely held, owner operated, founder Read More>>

Trademark Counterfeiters: The Scourge to What You Build

Peter King VR CEO When you hear the word “Counterfeit”, most people instantly think of someone printing money and trying to pass it off as the real thing. In the franchise world a Counterfeiter is someone who has taken your registered trademarks and changed them ever so slightly with the intent to trade off your good Read More>>

5 Things You Need to Know When Selling Your Business

BusinessesForSale.com Selling your business is never going to be an easy process. It’ll take longer than you expect, and could be more complicated than you anticipate. However, if done correctly, it can set you up financially for the next step in your life – whether that’s retirement, another business venture or something els Read More>>

9 Point Checklist: How to Attract the Right Buyer

JoAnn Lombardi VR President When considering selling your business, every buyer expects a business of great value as an investment. Depending upon the qualified candidate, it could be an entrepreneur with a specific set of needs that motivates them to invest in an established business or it could be a private equity group that sees t Read More>>

Top 5 Reasons Why Being on Social Media Boosts the Worth of Your Business

Joshua Jones VR - Communications The art of selling your business is simple yet complex, that's why it is best to consult an experienced business broker. With so many emerging technologies, it can be hard to know what to adapt to and how it can benefit your business in the long run. Most of these worries can be eased once given th Read More>>

Business Books & Records….Who Cares? Your Buyers Do!

JoAnn Lombardi VR President You likely didn't go into business for yourself because you relished the idea of creating, organizing and maintaining financial documents. Financial records are part of your ongoing operations, but if you're like most business owners, you likely don't focus on them often or think about them regularly; howe Read More>>

Getting the Most Out of Your Business Before Selling

JoAnn Lombardi VR President Selling a business isn’t simple as most people would think leaving the entrepreneur with more options than they can think of. Taking the wrong approach could have a negative impact financially both for the seller and company, so knowing the advantages and disadvantages from a professional intermediar Read More>>

How Do I Put a Value on the People in my Business?

JoAnn Lombardi VR President One corporate accountant at a company colorfully described employees as "costs walking on legs." Though businesses want maximum efficiency from their employees for minimal cost, the actual measures of intangibles such as corporate efficiency due to employees' capability or customers' loyalty due to emplo Read More>>

Don't Recycle Business Valuations

Peter King VR CEO Recycle Bottles, Not ValuationsValuations are valid only for a specific time and purpose. Typically, a valuator explains the valuation's scope in an engagement letter and again in the written report. Despite this, business owners sometimes mistakenly think they can save time and money by recycling old valuations for Read More>>

Five Common Valuation Myths

Peter King VR CEO Business valuationis a complex discipline. Much of its lingo, logic and underlying mathematics can be incomprehensible to those outside the profession, giving rise to many misconceptions. So let's set the record straight concerning five common valuation myths. 1. Net income and net free cash flow are synonymous. Read More>>

Every Business Is A Risky Business!

Remembering Assets in a Business Valuation

Peter King VR CEO Did you know that a business' assets are an important piece to a business valuation? Most people involved in selling their business underestimate the importance of the fair market value of their assets. Relying solely on book value or your best estimate will cost you a lot of money left on the table. In order to per Read More>>

Understanding Intellectual Capital in a Business

JoAnn Lombardi VR President Intellectual capital (IC) is just that: a capital asset consisting of intellectual material. As such, it is one of three forms of capital: Financial capital; Tangible or fixed assets, which include land, buildings, machinery, and other long-lived equipment; and Knowledge. To be consi Read More>>

Elements to Avoid When Valuating a Business

Peter King VR CEO When valuating a business, it's important to understand the common mistakes that can be made. At VR, we perform a business valuation that is not only comprehensive but avoids relying on certain elements such as the following. Unrealistic Cash Flow Projections The most common mistake typically made in valuation Read More>>

Using New Yardsticks to Measure Your Business

JoAnn Lombardi VR President The Internet is an important tool for enhancing the value of any business and its owners. As a business owner, it allows you to develop new ways to measure your performance as well as market to qualified buyers if you are looking to sell. At VR, we use a variety of different yardsticks to help enhance Read More>>

Ensuring Your Business Retains Its Value when Looking to Sell

Peter King VR CEO Owning a business takes a lot of hard work and dedication. Most of all, you need to have a passion for what you do on a daily basis – managing the business effectively, handling day-to-day operations, attending to situations when they evolve, etc. Like anything in life, your ownership days have a start and an Read More>>

Determining the Fair Market Value of a Business

Peter King VR CEO It should be noted that in determining the fair market value of a business, the appearance of the establishment, equipment and products is imperative. In particular, the equipment must be judged on mechanical and electrical working conditions and not just on appearance. Paint, lubrication and general clean up should Read More>>

What a Business is Worth to Strategic Buyer

JoAnn Lombardi VR President Buyer perception will affect what a buyer is willing to pay for a business.Itwill also makedifficult to considertheestimating the target business' value. A business is worth more to a strategic buyer where synergies, economies of scale and other integration benefits can be achieved. How do we know which Read More>>

Price vs. Value

Peter King VR CEO A common misconception is that a business’ price is the same as its value. This is not always true. Price can be determined by many factors including deal terms, buyer perception, etc. There are many types of value as well, including fair market value, fair value and value to the buyer. Price can be skewed up Read More>>

Valuation Considerations When Buying or Selling a Business

JoAnn Lombardi VR President The single most important decision in making an acquisition (or completing a merger) is in determining the value or setting the price. In a traditional merger, where the acquiredbusiness' shareholders exchange their stock for stock in the acquiring business, the negotiation of price seems simple – wh Read More>>

Incorporate Valuations into Your Presentation

Peter King VR CEO When you are meeting with a prospective client, it’s important to offer performing a business valuation. There are ways to effectively present the valuation to the client, showing the advantages to both the seller and buyer, which valuation is right for the client and using the right technique to be successful Read More>>

Deciding a Fair Price when Selling a Business

Peter King VR CEO When you are looking to sell a business, there are many way to price that business, which your VR business intermediary can assist. Multiples of cash flow – Usually 1 to 3 times annual cash flow depending on the type and size of the business; Value of equipment and inventory – This include Read More>>

Mistakes to Avoid When Performing a Business Valuation

JoAnn Lombardi VR President When you are preparing a valuation for your business with a VR business intermediary, do not attempt to embellish and create false numbers. This will only hurt your chances ofselling your business to the right buyer. You want to be honest with your VR business intermediary. This means you need to avoid mis Read More>>

The Main Two Methods of Valuating a Business

JoAnn Lombardi VR President Whether you’re selling or buying your business, your VR Intermediary will perform a business valuation. There are two methods that are normally used in business valuations: Multiple of Earnings and Discounted Cash Flow Approach. Multiple of Earnings This method can also be used when valuing a b Read More>>

Doing a Business Valuation as a First Time Buyer

JoAnn Lombardi VR President Every entrepreneur that’sbuying a business for the first time is faced with the challenge of determining what the fair price for a given business is. Whether other reasonable parties will disagree,business valuation is equally both an art and science. Commonly, small businesses are valued at a m Read More>>

How to Approach the Selling Price of Your Business

JoAnn Lombardi VR President The topic of what the business price should be is two-pronged. On one end, sellers should never a.) Be rushed on giving a price, b.) Consider buyers to be within reason for asking about it at any point in the discussion and c.) Be realistic if they expect to complete transactions. On the other end, buyers Read More>>

Knowing How to Correctly Valuate a Business

Peter King VR CEO Determining the value and set price is one of the most important decisions that you’ll make when going forward with buying or selling a business. VR can help you with the many considerations that you have to make when doing a valuation. If you’re looking to buy or sell a business, VR will prov Read More>>

Avoiding Common Mistakes When Valuating Your Business

JoAnn Lombardi VR President As important as valuating your business is before you decide to sell, you don’t want to run into making some common mistakes when you’re trying to estimate. Make sure that you pay attention to the many factors that exist if you are going to be selling. Specifically, you wantto avoid doin Read More>>

Appraising Your Business’ Intellectual Property

Peter King VR CEO Intellectual property has become a hot topic. Make no mistake that patents, trademarks and copyrights can become a valuable asset in the portfolio of your small business, and should be managed prudently. It’s always an ongoing and daunting question for a business owner to face when the time comes t Read More>>

Calculating the Maximum Price and Necessary Terms for Your Business

Peter King VR CEO We here at VR Business Brokers are well schooled in calculating the maximum price and correct terms that are necessary to successfully market your business. There are many methods that are employedincluding cash flow, industry averages, current area trends and asset values.Because a VR business broker lives and br Read More>>

Industry Rules of Thumb Tell Only Part of the Story with Business Valuations

Peter King VR CEO Rules of thumb can serve as useful sanity checks for controlling interests that are generally valued using more technically sound methods. However, they should not be used as the sole method of business valuation for a few reasons: Based on Unreliable Word of Mouth Rules of thumb have always been largel Read More>>

Setting the Record Straight on Business Valuation

Peter King VR CEO Many people can become incredibly confused about understanding what business valuation means. Many misnomers exist regarding the subject, which canbe a complex financial discipline that consists of unintelligiblejargon, reason and underlying mathematics to any outsider who maybe looking to buy or sell. Therefore Read More>>

Has Sold More Businesses In The World Than Anyone.®

Business Valuation

LATEST POSTS

Archives

CATEGORIES

BLOGROLL

TAGS

Learn

Discover

Franchise

Get in Touch