Equipment Appraisal: Understanding the Process

Equipment Appraisal: Understanding the Process_ GCF Business Valuation

The Process of Equipment Appraisal and Its Importance in Asset Valuation Equipment appraisal is a critical component of asset valuation, providing an objective assessment of the value of machinery and equipment. This process is essential for various purposes such as financing, insurance, sale, and purchase transactions, tax assessments, and financial reporting. Here’s a step-by-step overview […]

Read More… from Equipment Appraisal: Understanding the Process

Industry Benchmarks for Limited-Service Restaurants

Industry benchmarks serve as a critical starting point when evaluating the financial and operational performance of a company. High performance often correlates with a higher valuation, making these benchmarks essential. GCF Valuation is a full-service business valuation firm dedicated to privately held businesses and the professionals who support them. During our appraisal process, we invest […]

Read More… from Industry Benchmarks for Limited-Service Restaurants

Comparing Apples to Oranges: Industry-Specific Insights for Accurate Business Valuation

Comparing Apples to Oranges- Industry-Specific Insights for Accurate Business Valuation_ GCF Business Valuation

In the world of small business, every business is unique because every small business owner is unique. As a result, making the assumption that businesses operating within the same industry are going to be valued the same is an improper one.  When looking at the various industry sectors (construction, manufacturing, distribution, etc.,), the financial structure […]

Read More… from Comparing Apples to Oranges: Industry-Specific Insights for Accurate Business Valuation

Understanding the Impact of Franchisor-Required Remodels on Business Valuation

Understanding the Impact of Franchisor-Required Remodels on Business Valuation

What Should Not Be Overlooked When Valuing a Franchise Bottom line, the first thing you should ask in dealing with a franchise acquisition is, “What are franchisor-required remodels, and how much will be required?” It cannot be overlooked. Here are the valuation approaches that could be impacted. The Income Approach Estimating Increased Revenue From a […]

Read More… from Understanding the Impact of Franchisor-Required Remodels on Business Valuation

Maximizing Success in M&A Transactions: The Power of Independent Business Valuations

The Power of Independent Business Valuations_GCF Business Valuatio

In the fast-paced world of mergers and acquisitions (M&A), success hinges on informed decision-making and strategic negotiation. An integral component of this process is independent business valuations—an invaluable tool for M&A advisors seeking to guide their clients through complex transactions with confidence and clarity. The Importance of Commitment: At the outset of any M&A engagement, […]

Read More… from Maximizing Success in M&A Transactions: The Power of Independent Business Valuations

Gift Card Liability When Valuing a Business

Gift Card Liability When Valuing a Business

Recently, a lender (who now has become a client) came to us looking for a second opinion on a valuation of a Massage Envy Franchise. Their appraiser came back with a negative value conclusion which centered around deferred gift card liabilities transferring with the sale. We took a step-by-step review of the business and how […]

Read More… from Gift Card Liability When Valuing a Business

The Great Debate: Business Valuations With Or Without Inventory

The Great Debate: Business Valuation; With and Without Inventory

Steve Mize, ASA July 21, 2023 In small business transactions, purchase agreements can be written any number of ways. For those businesses that are dependent on inventory to generate revenue and cash flow, you’ll typically see the purchase agreements structured where the Price includes Inventory or Price + Inventory. All qualified appraisers agree that inventory […]

Read More… from The Great Debate: Business Valuations With Or Without Inventory

What is Business Valuation? Why & When You Need One

Hero image for blog: What is business valuation - Why and when you need one. Light blue background with stacked blocks increasing in size to the right.

Steve Mize, ASA Business Valuations are critical for sale, transition, and business planning. If you’re in one of these dynamic time periods in your own business, you may be left with the question, “What is business valuation?” Put plainly, a business valuation is the value that has been determined by an accredited appraiser of the […]

Read More… from What is Business Valuation? Why & When You Need One

Franchise Value: Post-COVID

how to value a franchise business

One year later . . .and the small business acquisition market has changed significantly. COVID has impacted most businesses, positively or negatively. As a valuation firm, we are constantly being asked how COVID has impacted business values. Our response is not so simple, but let me try to explain: Steve Mize, ASA September 27, 2022 […]

Read More… from Franchise Value: Post-COVID

Valuation of a Personal Service Franchise in Today’s Market

reset button

Last year we wrote an article on how to value a “personal service” franchise. In the original article we discussed some of the concerns. One being a continued decline in revenue trends for this industry, due to competition and overall saturation in the market. Another, and more importantly, the reliance on “cash flow”. Steve Mize, […]

Read More… from Valuation of a Personal Service Franchise in Today’s Market

Deep Dive into Financial Statements with a Quality of Earnings Analysis

Quality of earnings blog

Jason Pagan, CPA A Quality of Earnings (QoE) analysis is a deep dive into the financial statements to understand where the business generates value. The Quality of Earnings is not an audit but rather a detailed financial analysis, and the two are not mutually exclusive but complementary.  An audit is balance sheet focused, whereas the […]

Read More… from Deep Dive into Financial Statements with a Quality of Earnings Analysis

Gift Card Liabilities When Valuing a Business

Gift Card Liability When Valuing a Business

Recently, a lender (who now has become a client) came to us looking for a second opinion on a valuation of a Massage Envy Franchise. Their appraiser came back with a negative value conclusion which centered around deferred gift card liabilities transferring with the sale. We took a step-by-step review of the business and how […]

Read More… from Gift Card Liabilities When Valuing a Business

GCF Business Valuation Celebrates Small Businesses

GCF celebrates small businesses

Earlier this month, our team celebrated National Small Business Week. This past year has been a turbulent time for business owners and the SBA lending community, and we are proud to be part of a resilient community.

Usually, National Small Business Week is hosted by the Small Business Association (SBA), and this event takes place the first week of May. This year, the SBA is holding a virtual summit later in the fall. […]

Read More… from GCF Business Valuation Celebrates Small Businesses

Business Assets: The lifeline you are looking for…

life ring in the ocean

The COVID-19 pandemic has affected businesses globally in various ways — both positively and negatively. For the businesses who were hit hardest, look no further than your tangible assets as a lifeline to ride out the storm from the pandemic. Todd Taylor, EECA, Valuation Analyst & Jason Pagan, ASA Over the last year, we have […]

Read More… from Business Assets: The lifeline you are looking for…

Different Types of Business Valuations – and How to Get There

map with connected points

Business Valuation Process Varies By Need Darren Mize, ASA What’s driving the request for a business valuation? Different circumstances call for a more – or less – comprehensive business valuation. Your specific need will determine both the timeline for a final report and the actual process a business valuation professional will follow. Different Types of Business […]

Read More… from Different Types of Business Valuations – and How to Get There

What Factors Determine the Value of a Business?

math on chalk board

Understanding the Business Valuation Equation Steve Mize, ASA GCF was engaged to value a pharmacy and the lender quickly explained how “strong” the deal was even stating: “This is a slam dunk!” So, we began the due diligence process and immediately discovered: If there’s a conversation underway about requesting a business valuation, the underlying question will […]

Read More… from What Factors Determine the Value of a Business?

X Factors In the Business Valuation Formula

lightbulbs

Professional Expertise, Insight, and Industry Experience Bring Crucial Context Darren Mize, ASA GCF was engaged to value a pharmacy and the lender quickly explained how “strong” the deal was even stating: “This is a slam dunk!” So, we began the due diligence process and immediately discovered: Whether you are a business owner, a lender, a business broker or financial […]

Read More… from X Factors In the Business Valuation Formula

Is There a Preferred Approach to Valuing a Company For Sale?

Small Business Owners Ready To Retire

Darren Mize, ASA Let’s review the 3 approaches to value: Cost Approach Market Approach Income Approach The Cost Approach The Cost approach relies on the business’s balance sheet. So, unless the company is heavily invested in assets this approach is rarely used. The Market Approach The Market approach relies on comparable business transactions within the […]

Read More… from Is There a Preferred Approach to Valuing a Company For Sale?

“Add-Backs” and How They Impact Business Value

cash flow chart

Steve Mize, ASA One of the most challenging aspects of valuing a small business is the use of Income Statement Adjustments, otherwise known as “add-backs”. For smaller businesses add-backs are common, but can they be verified? Add-Backs – The Questions We’re Asking • Can the expense being added back be traced back to the source […]

Read More… from “Add-Backs” and How They Impact Business Value

The #1 question to ask when determining contract value in business valuation

#1 question to ask when determining contract value in business valuation

Jason Pagan, ASA How is revenue being booked on contracts? The short answer: When accounting for contractual work, how revenue and expenses are booked on time-based projects (that span longer than 60 days) will have a direct reflection on cash flow and business value. Why is this contract value question critical to the value of […]

Read More… from The #1 question to ask when determining contract value in business valuation

Beware of the so-called “Slam Dunk” deal

Taking caution with valuations

Steve Mize, ASA GCF was engaged to value a pharmacy and the lender quickly explained how “strong” the deal was even stating: “This is a slam dunk!” So, we began the due diligence process and immediately discovered: Profit margins well above the industry average. Initial thoughts suggested “compounding” (which typically carry a higher profit margin). However, […]

Read More… from Beware of the so-called “Slam Dunk” deal