Due to the complex nature of the construction industry, engaging a qualified business appraiser is an important first step in accurately determining a construction company’s value. Essential components such as Working Capital Requirements, Work in Progress (WIP), and dependence on Machinery and Equipment (M&E) significantly impact financial performance and must be analyzed in detail when […]
When selling a small business, the goal is always to maximize shareholder value and avoid leaving money on the table. Achieving this starts with an accurate business valuation. Since selling a privately held business can take a year or more, accuracy in valuation is crucial. An independent business valuation not only ensures accuracy but also […]
Read More… from How to Value a Small Business for Sale: A Comprehensive Guide
As a business broker, you’ve spent years honing your craft—developing a keen understanding of your market, building client relationships, and closing deals that help businesses change hands smoothly. It’s no secret that in your field, experience matters. However, the marketplace is evolving, and the modern broker faces new challenges that require more than instinct and […]
Read More… from Traditional Meets Data-Driven: The Modern Business Broker’s Guide to Valuations
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 Driving Success: Industry Benchmarks for FedEx Routes
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 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
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 […]
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
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, […]
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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
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
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 […]
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
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…
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