The Role of Business Valuation in Buying a Business
There is no question that small and independent businesses are making a comeback. In the New Yorker article Small Is Bountiful, Tim Wu shows how an increasing number of consumers are flocking to buy from small businesses after decades of buying from big corporations. These small businesses that are winning the hearts of consumers do […]
Why is Business Valuation So Confusing?
You are thinking about selling your business, and you want to know how much your business is worth. You go to your favorite search engine and search for “business valuation”, and immediately become overwhelmed by all the business valuation jargon. Discounted cash flow analysis, weighted average cost of capital, enterprise value, leveraged and unleveraged beta…what […]
Want to Own a Business? Learn Business Valuation
USA Today recently conducted a poll in collaboration with the Allstate Small Business Barometer that shows the best time to own a small business is now. According to this nationwide survey, 61% of the small businesses polled said they were doing well, and almost 80% said their business grew in the last 3 months compared […]
Improve Your Financial Literacy by Understanding Business Valuation
Robert Kiyosaki, international bestselling author of Rich Dad, Poor Dad, has been stressing the importance of financial education and improving one’s financial literacy for decades. In his Yahoo Finance article “Paying the High Price for Bad Advice”, Kiyosaki talks about the high price people pay when they are low on financial literacy and can’t tell […]
Business Valuation of Small Businesses
In February 2016, the New York Times featured Jack Bonneau, a 10-year-old boy who started not just one lemonade stand, but a chain of them. He obtained funding from Young Americans Bank, which partners with the Young American Center for Financial Education to improve the financial education for kids ages 6 to 21. This year, […]
The Impact of SBA Financing on Business Valuations
Many people think that business valuation is a process that is fixed and constant. In other words, if you apply the right formula, you can come up with the value of your company. The reality is that business valuations are always in flux and the process of business valuation can be heavily driven by current […]
Restaurant Business Valuation Explained
Restaurants are one of the most popular businesses people want to own. After all, what can be more romantic than owning your own restaurant? Every year, thousands of people search for a restaurant to buy, and thousands of restaurant owners decide to sell their business for one reason or another. This article will explain how […]
Business Valuation on Franchises
What are the differences between the business valuation of a franchise and the business valuation of an independently owned business? To answer this question, we need to understand how operating a franchise is different from operating a non-franchise. Owning a franchise comes with a number of benefits. There is a proven business model, recognizable brand […]
Business Valuation of Auto Repair Shops
Automotive repair is a $62 billion industry annually in the United States with over 260,000 businesses and an annual growth rate of 2.2% over the last 5 years. The industry has several important segments. When a car breaks down or needs service, the consumer has several options. One, the consumer can go to the dealership […]
4 Ways to Increase Your Business Valuation
Building a business and selling it for a profit is the dream of many entrepreneurs. Unfortunately, most business owners do not understand what makes a business valuable to potential buyers, and therefore do not know how to increase the valuation of their company. In fact, we meet many business owners who spent many years creating […]
The Facts and Fiction of Business Valuation Multiples
When it comes to business valuation, there are a lot of myths and half-truths floating on the Internet. There are online calculators that let you calculate the value of your business for free, and business appraisers that might charge as much as $10,000 to $40,000 to perform a business valuation. How much should you pay […]
How to Value a Business
Buying a business is one of the best ways to become a business owner without the risks of starting a business from scratch. If you make a good purchase, you will likely have customers coming in the door from day one. That means you have revenues and cash flow from day one to pay the […]
How to Treat Your Books to Maximize Your Business Valuation
Getting a business valuation is often the first step when a business owner is thinking about selling the business. Every year, thousands of small business owners get a business valuation. A common question that arises is: “How should I treat my books to maximize the sale price of my business?” This article provides 3 tips […]
How to Pick a Business Valuation Service
When it comes to obtaining a business valuation, business owners are faced with a myriad of choices. Should you talk to a business broker? Should you ask your CPA? Should you use a free online business value calculator? Should you use a paid online service? Or should you hire a certified business appraiser? The reality […]
Do I Need a Business Valuation?
As an entrepreneur, you might wonder when it is the right time to get a business valuation. While business owners get a business valuation performed for a variety of reasons, here are 5 common reasons to get a business valuation report: Thinking about selling your business. Contemplating the potential sale of your company is by […]
6 Differences between a Business Valuation and Property Valuation
In the world of small business, building good relationships is key. It is not uncommon for many small business owners to ask their favorite real estate agent to tell them how much their business is worth. While a real estate agent might be well practiced in valuing properties, he or she may not necessarily be […]
5 Factors That Affect Your Business Valuation
Stop. Ask yourself: “When is the last time you’ve thought about how much your business is worth?” If the answer is “I don’t know”, you are not alone. Most entrepreneurs and business owners never think about the value of their business until they want to sell the business. Unfortunately, it is often too late to […]
4 Business Valuation Mistakes to Avoid
Every year, thousands of business owners wonder how much their business is worth. Knowing the value of your business can help you tremendously with the planning process whether you are thinking about selling your business now or in the future. Even if you are not interested in selling your business, knowing what makes a business […]
