Pricing and Valuing

Although often used synonymously, the terms pricing and valuing, or appraising, in practice means two totally different things.

Simply stated, value is what something is worth; price is what someone will pay for it.

BUSINESS VALUATION SERVICES

CONSULTATION WITH YOUR ATTORNEY

• Not all appraisals shall end with a costly narrative report.
• Most of all small cases (divorces, partnership disagreements, etc.) do not end in court, both parties usually negotiate the value of the business involved.
• We will work with your attorney in his negotiations with the other party demands.

VALUATION REPORTS

• Narrative Reports.
• Short Reports

In most small cases the books will not reflect the true financial position of the company because of Unreported Income and Personal Expenditures hidden within the business operations.

In these cases, the appraiser has the most difficult assignment in arriving at a Fair Market Value of the business, but, we will use the forensic methods available to us, such as Cash Analysis, among others, to arrive at the correct value.

TYPE OF BUSINESS

• Retail
• Wholesale
• Manufacturing
• Service

What product does the business make, or sale, or service?

Each of these businesses will need different types of analysis , and use different types of valuation approaches and methods, including the calculation of Goodwill.

INTERNAL STRUCTURE

• Company Background and History.
• Operations.
• Management.

LOCATION

• Lease.
• Competition.

FINANCIAL ANALYSIS

• Internal Control.
• Comparative Analysis.

FUTURE EXPECTATIONS

• Forecast of future operations

BUSINESS SALES STATISTICS

• Market Research

JUSTIFICATION OF PURCHASE TEST

This will provide a mean to test the reasonableness of a value estimate that has been arrived at by one or more of the recognized valuation methods.

Also, The most important application will be in the determination of the proposed “selling price” of the business . Is this an economically sound move?, does it pays for itself over a reasonable period of time