What is a Business Opinion of Value and why you need one?
Simply put a BV provides a business owner with a value for their business based on market variables, comparable sales data, and industry expertise that a buyer would willingly pay for the business on the open market. Some of the factors we will analyze are the company’s financial performance, market position, customer base, equipment value, and the business’s organizational structure.
Once the BV is completed, we will develop a BV report to share with the client for reference, this report will outline the selling price CFO LOGIC recommends and include comparative market analysis. Typically, if a client is not ready to list their business for sale, they will use this report to continue to build the value of their company for a future exit, so they can receive the return on investment they’re looking for.
Who can provide a BV?
While there are a number of professionals that can provide an opinion of value from licensed appraisers and accountants to real estate professionals and lenders, when it comes to selling a business it is important to work with a professional firm with financial knowledge and that has the tools needed, including analytical software. CFO LOGIC has the market expertise and access to the comparables data required to build an 'opinion of price' that can later be used as the listing price of a business for sale.
How does BV work?
A BOV is based on a number of variables like business size, market, industry, geographic location, cash flow, and sales comparables which we then use to weigh to ultimately develop a BV report of the business. This price can later be used to list a business for sale on the current market.
If you only take away one nugget of wisdom from this valuation discussion, it should be that a business for sale is only worth the selling price a buyer is willing to pay for that company, which is why we always clarify with clients that valuation is an art, not a science. To learn more about our BV services, we invite you to schedule a free consultation.
Documents & Information needed to commence are:
The Business Name
Most recent 3 years Tax Returns (2019, 2018, 2017)
Financial Statements | Current Balance Sheet + 3 most recent years
Financial Statements | Current Income & Expense + 3 most recent years
Industry Name or Code
Type of Ownership
Year of Inception
Reason for Valuation
WE HAVE A SECURE DOCUMENT MANAGEMENT & TRANSFER PORTAL.
Our Fee is on a Per Entity Basis.
All PRICING IS SLATED TO INCREASE ON 09/16/2020
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