“I worked with Bob for three years. Besides being a business broker, he’s a very savvy business consultant who helped me get my troubled business back on track.”

Organic Food Grower

“Thank you, Bob Heger, for saving our marriage! Thank you for the many hours of effort on your part to sell our business—I don’t think this would have happened without your help.”

Michael L.

“Bob is seasoned and a savvy problem-solver. Today I am a happy owner of a successful small business, and I am grateful to Bob Heger for helping me find the business that is right for me.”

Jerry D.

“Bob worked with me to buy my business. When it came to finding and leasing a space, I knew I was out of my league. Bob helped me negotiate my lease, and he got me a great deal.”

Steve G.

“Bob’s help with tough and complex issues proved to be invaluable and produced the best possible results for me and my struggling business.”

John M.

Value a Business

For what it’s worth . . .

A business is worth what someone will pay for it. That amount has nothing to do with how much money you need to retire. Lack of understanding this fundamental fact is one of the biggest and saddest mistakes we see as Business Brokers. For what it’s worth.

In general, there are 3 options for finding the value of a business:

  1. DIY (do it yourself)
  2. Broker’s Estimate of Value
  3. Appraisal

5 reasons people want to value a business 

  1. Purchase or sale
  2. Buy-Sell agreements
  3. Retirement planning
  4. Disputes, divorces
  5. Gifts, charitable contributions, employee stock ownership plans

There are 3 options for finding the value of a business

1. Do-it-Yourself (DIY)

If you have interest or aptitude, you may want to estimate the value of a business yourself. This option is not for everyone, but you can get a good understanding  of valuing a business by following these steps:

  1. Determine SDE (“Seller’s Discretionary Earnings”) How to Determine SDE 
  2. Determine the Multiple Estimating a Multiple 
  3. Apply the Multiple Using Multiples to Estimate the Value of a Business

2. Broker’s Estimate of Value

As Business Brokers we are trained to estimate the value of a business. We use several methods to estimate value applying statistics from databases for comparable sales. To learn about the methods we use, read How Business Brokers Estimate Value.  Contact us now for a Broker’s Estimate of Value for your business.

3. Appraisal

If the estimate of value is going to be used in a court of law (disputes, divorces) or for tax purposes (gifts, charitable contributions, employee stock ownership plans) you will need an appraisal. Appraisals are more comprehensive than a Broker’s Estimate of Value in that they require in-depth understanding of financial statements and include an assurance that data is accurate. Appraisers strictly follow Uniform Standard Professional Appraisal Practices. Generally, a Brokers Estimate of Value costs less and takes less time than an Appraisal, and is appropriate to establish a range of probable selling prices, an asking price, or a starting point for negotiation between two parties.

Seasoned business consultants that help our clients make informed decisions.

Contact BizReady, Inc.

Phone: 510.384.1046
Fax: 510.217.4206

Lee Sheaffer: lee@bizreadyinc.com
Bob Heger: bob@bizreadyinc.com
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