Business Valuations

Your business may be your most valuable asset, so it is important that you develop a proper understanding of its potential sales value. This is especially true if you are planning to sell it in the next 12 to 24 months. We take the responsibility of helping you determine an appropriate value and asking price very seriously! Your Sunbelt business broker has had extensive training on the various methods of business valuation and can help you price your business appropriately.

For those requiring a more formal and comprehensive approach to business valuation, Sunbelt recommends the services of a reputable, independent, third-party valuation company, such as GCF Valuation, which performs thousands of business valuation engagements each year and has access to the most comprehensive databases of business transactions in the nation. Their reports are comprehensive, reader friendly and can be shown to prospective buyers and financing services. In addition to receiving a report on the fair market value of your business, you’ll have direct access to an accredited appraiser throughout the engagement to assure all of your questions are answered. Below is a list of services available to you through GCF Valuation. Other valuation companies may offer different services and turnaround times. Work with your local Sunbelt broker to determine your needs.

Calculation of Value (or “Value Calculations”)

The objective of a Calculation of Value is to provide an approximate indication of value based upon the performance of limited procedures agreed upon by the appraiser and the client. Although we try to follow USPAP, calculation reports are not officially considered an appraisal by the Uniform Standards of Professional Appraisal Practice, however it does allow for “adequate” and ”reasonable” care to our clients. Calculation of Value reports are utilized to provide a “preliminary” value for the broker to list the business for sale and to be utilized until a Complete Appraisal is required.

Turnaround Time: 5-7 business days to the preliminary draft phase

Complete Appraisal – Summary Report

Also called an “Abbreviated” or “Letter Form Written Report”, this abbreviated form of report is the minimum level of reporting embraced by the Institute of Business Appraisers (IBA) – BV Standards, but still meets USPAP requirements. The report contains at least a summary of the material factors that leads to the conclusion, but is usually intended to reduce the normal appraisal burden of writing a comprehensive report. However, the appraiser is still required to perform materially the same investigation and analysis as would be required for a complete self-contained report.

Turnaround Time: 3-4 weeks to the preliminary draft phase

Complete Appraisal – Self-Contained Report

This is a formal presentation of the value of a business in a self-contained written report. If a valuation has the potential to go to court or if the report needs to be reviewed by others, such as the IRS for tax implications, this type of report explains in full detail how the value was derived. Uniform Standards of Professional Appraisal Practice (USPAP) and American Society of Appraisers (ASA) address the above as a “Comprehensive, Written Business Valuation Report”. The Institute of Business Appraisers (IBA) addresses the above as a “Formal Written Report”.

Turnaround Time: 4-6 weeks to the preliminary draft phase