Professional Valuation Services
Every smart business person knows the importance of being able to provide a fair and accurate accounting of a business’s value. It is particularly important when attempting to sell a business.
The valuation document is the single most useful piece of financial information about any business.
A business valuation is used to
- Prove the fair market value of your business.
- Provide information to lending institutions for business loans or lines of credit.
- Validate information for a merger, acquisition or stock offering.
- Create a succession plan or a trust.
- Develop an estate plan or a tax plan to protect wealth or capital gains.
- To determine the value of assets and liabilities.
- For the creation of an employee stock ownership plan (ESOP).
To know why it is so important to have a valuation you must understand that the book value reflected on the financial statements of a business usually differs vastly from its true market value.
Without a new valuation, a business owner must be prepared to defend his/ her opinion of value. For instance, any potential buyer will place little creditability in a value arrived at by an owner’s accountant. Therefore, a properly prepared valuation report by a valuation expert would become the best tool useable to obtain maximum selling price.
When you work with a VR Intermediary to create a valuation report, the goal is a simple one: the creation of an accurate and comprehensive document that will stand up to scrutiny.
For larger businesses, VR has established relationships in place with accredited firms whose valuations are accepted by 95% of all SBA lenders in the country. Using third party valuations make purchase price a small part of negotiations and put the emphasis on agreements to other terms and conditions of the transaction. VR sells 86% of all businesses that agree to a third party independent valuation.
VR’s vast experience, coupled with the knowledge of a wide range of valuation methods for different business types, will result in an expert opinion of value, delivered in a responsive, timely and efficient manner. VR has valued and sold virtually every type of business.
Our wide range of experience provides VR with an unparalleled proprietary knowledge of real market values and emerging market trends, all available in a private computerized data base accessed only by VR Intermediaries.