We assist Sellers in determining the asking price for
their business every time we list a business. However, Buyers
are sometimes skeptical of asking prices. In order to present
them with an unbiased valuation, on a fee basis, VR
Business Brokers of SW Florida
will engage Gulf
Coast Financial, Inc.
based in Tampa, Florida, to provide a formal, independent
business valuation. VR assists the Seller in preparing documents
needed to support the valuation.
A formal valuation provides prospective Buyers, banks, consultants,
CPA’s and attorneys and their respective clients with
a credible valuation conclusion that was formed by applying
the most advanced and appropriate valuation techniques.
Every business is unique; thus, Gulf Coast’s analysts
will spend many hours researching historical transactions,
reviewing court cases and conducting detailed financial analysis
for every valuation assignment to assure it is as accurate
as possible.
Valuation Services Available Through VR Business Brokers
Value Analysis
The value analysis is a limited scope business
valuation designed specifically for a “main street”
business with sales of $1,000,000 or less. The report is approximately
40 pages and provides only a summary of how the valuation
conclusion was determined. The basis of this valuation is
discretionary cash flow, since most main street businesses
are bought and sold on a multiple of discretionary cash flow.
The valuation primarily considers historical and current financial
performance. Very little time is spent with the Balance Sheet.
The report
contains the following:
• Historical Income Statement
• Adjusted Cash Flow Statement
• Comparable Sales (Market Approach)
• Summary of Common Size Financial Statistics
• Summary Review of Each Valuation Approach
• Valuation Conclusion and Justification
Formal Valuation
The formal valuation is also a limited scope
business valuation. It is intended for businesses with sales
between $1,000,000 and $5,000,000. The report is approximately
80 pages and provides a detailed review of all aspects that
were considered in determining the final valuation conclusion.
This report heavily emphasizes ratio, trend and common size
analysis. A discounted future cash flow model is also included.
In addition to the earnings of the company, the Balance Sheet
is a key component of the analysis.
The report
contains the following:
• Historical Income Statement and Balance Sheet
• Adjusted Cash Flow Statement
• Complete Financial Statement Analysis
• Common Size Analysis
• Ratio Analysis
• Economic Outlook
• Comparable Sales
• Detailed Description of Each Valuation Approach
• Valuation Conclusion and Justification
Merger &
Acquisition (M&A) Valuation
An M&A valuation is a comprehensive business
valuation used for transactional purposes. This valuation
is intended for a “middle market” company with
annual revenues in excess of $5,000,000, strategic acquisitions
of niche businesses, and/or any business with significant
growth expected in the future. The basis of the valuation
is future earnings with historical performance playing only
a limited role in the valuation conclusion. This report emphasizes
the discounted future cash flow model and incorporates private
and public comparable analysis. This report is completely
customized and the number of pages varies depending on the
volume of information used to support the conclusion.
Comprehensive
Valuation Services
Valuations for ESOPs, Bankruptcy, Estate
Tax, Litigation Support and Business Planning are also available.
They are focused on U.S. Court Reviews and an in-depth analysis
and research of discounts and premiums. A comprehensive report
is a self-contained full scope business valuation, which entails
full due diligence by Gulf Coast Financial, Inc. This valuation
is not usually developed for transactional purposes. Its main
purpose is to defend a certain value of a subject interest.
Contact us to
discuss in more detail how our business valuation services will benefit
your business.
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