Business Valuation

HomeBusiness Valuation

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Experience counts when determining the value of your business.

As Certified Business Valuators assisting businesses for almost four decades, we know how to assess the value of your business. We use a complex range of financial perspectives and our real life experience to determine the true value of your company. We’ll not only identify each of your value drivers, but we’ll offer advice on how to add value to your company—which is especially important if you are considering selling your business.  

Business Valuations – How much is my business worth?

There are many factors and methods that are taken into consideration when determining the value of a business. We are often asked, “What multiple will be used to value my type of business?” The answer to what sounds like a simple question can actually be quite complex. For instance, when you talk about multiples, are you talking about:

  • A multiple of revenues?
  • A multiple of net profits?
  • A multiple of gross profits?
  • Earnings before interest and taxes (EBIT)?
  • Earnings before interest depreciation and amortization (EBITDA)?
  • Before recasting or after recasting?

A business valuation should also consider your potential buyer. All buyers have an end goal in mind when thinking about the purchase of a business, and they’ll keep their personal goals in mind when determining an offering price. To demonstrate, ask yourself a question. Which is worth more: a barrel full of gold bricks or a barrel that offers plenty of fresh water? To a thirsty person stranded in the desert, the fresh water will be much more valuable than a barrel full of gold bricks.

In other words – a buyer’s motivation plays a role in the valuation. If your buyer wants your business in order to expand their business they may be willing to pay a higher-than-market price. If the buyer is purely financial, their price will most likely different.

 

Read more on how a buyer’s goals affect business value

 

We have discussed just a couple methods of valuing a business. When computing the value of your business we use every method applicable to help you achieve the very best price. Give Grove a call today to find out how much your business is worth – 1-866-825-8283.

As one of the few specialty CPA firms in the country operating solely in business sales and valuations, we have not only the extensive experience necessary to accurately determine the value your business, but we have highly specialized education. We are considered experts in our field.

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Knowledge is power, and we like empowering our clients.

Our free eBook identifies easy-to-implement tips that will make your business more valuable – no matter when you decide to sell.

Download now

Why business owners love us

  • "We would like to thank you for all of the effort and hard work you did for us.  You seem to go above and beyond for your clients or prospective clients.  We hope to remain in touch, not just through business but also friendship."

    John C. / /

  • "Thanks again for all your efforts to sell [our businesses]. You deserve the commission!"

    Matt S. / /

  • "Grover Rutter’s services will bring immediate qualified buyers and I would highly recommend their services."

    Paul G. / /

  • "We really appreciated the fact that all buyers had to be financially qualified before any confidential information about the business was disclosed. This allowed us to continue to focus on running our successful business the same way we always had without trying to be a sales person at the same time."

    Jim S. / /

  • "Whenever we have bought or sold a company, we have called and relied on Grover for his expertise. In one example, Grover’s structuring strategies on closing saved us in excess of $250,000 more in taxes than what our CPA firm thought was possible. Anyone wanting to buy or sell a business would be well served by Mr. Rutter."

    Rick D. / /

  • "The valuation that you provided us was thorough and comprehensive. The financial statistics that you presented were critical in determining the fair market value of our business. The prospectus that you created specifically for our business was very impressive to the qualified buyers."

    Jim & Michelle S. / /

  • "I have had business relations with Grover for the last 5 years. In that time I have found Grover to be knowledgeable and informative, with honesty and integrity. I would recommend Grover as representation for any interests of my company. I believe his professionalism and track record speak for themselves!"

    Jeffrey B. / /

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