4 VALUATION MODELS
33,000 BUSINESSES SOLD COMPARABLES
Our Business Valuations utilize 4 different valuation models in order to arrive at the Market Value of a business. The Market Value is expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arms length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts, Business Valuations Group utilizes these Valuation Models since they are the most commonly used models for valuing a business.
We pull comparable business sales from our database of over 33,000 business that have previously sold. We compare business types by NAICS code and geography to get the best comparable sales for the Business Valuation.
Tangible and Intangible
This common transaction-oriented fair market value conclusion includes the firm's inventory, furniture, fixtures and equpiment and all intangible assets ranging from customer base to goodwill.
Plus Working Capital
This fair market value conclusion is the valueof the company available to its owners or shareholders and incorporates all of the assets included in the "asset value" plus the firm's liquid financial assets/working capital (Cash, A/R, Deposits, etc.) minus its Liabilities (Short-term and Long-term).
Total Value of Capital
This fair market value estimate is equal to the "total value of the firm/business" or the value of the firm's equity plus its long term debt, e.g. it reflects the value of the entire capital structure (equity holders and debt holderrs) or "enterprise".
The liquidation value is based on the key assumption of insolvency and the immediate sale of all assets at or near "fire sale level coupled with the nearly simultaneous retirement of all liabilities. This figure does not include Account Receivable.