Valuations

Bray Business Brokerage can offer full in-house business evaluations for owners and sellers looking to obtain a price on their business in the current state. These “evaluations” provide a valuation for your business through financial and operational review, and are a cost-effective route for pricing your business. The other option for pricing your business is to obtain a certified business evaluation through a CVA. We can put you in touch with local CVA’s that are experienced and capable of providing fully certified business valuations and/or appraisals. Call us for a free consultation and/or to learn more about business valuations.

All Broker Evaluations can range in price depending on the company size, industry, complexity, and the availability of financial reports. A typical business evaluation from one of our business brokers can range from $1,000 – $5,000, with an average cost of approximately $2,500 per evaluation report. This includes an in-depth evaluation, report, and proposed value based on the businesses financial performance, balance sheet strength, growth variables, relative industry comparative sales, and more. Typical business valuations or appraisals from a certified CVA can vary, but typically range from $5,000 – $30,000+.

Different types of valuations

When deciding what kind of business valuation you are looking for, it is important to understand the main differences in the two valuations. There are 4 main differences between the two valuations:

  1. A certified business valuation/appraisal must come from a verified CVA (Certified Valuation Analysis) or of someone w/ a similarly relative credential focusing in business valuation VS Business Evaluations typically come from experienced business brokers who specialize in selling companies as opposed to strictly valuing them.
  2. Certified business valuations/appraisals are much more in depth, and usually account for more detailed analysis of internal financials, long-term/short-term growth factors, material external factors, and more VS a business evaluation that typically focuses on financial performance, strength of company tangible value, and comparable sales relative to the companies industry.
  3. Certified Business valuations typically require much more financial information/reporting to be delivered and require more insight/involvement from Sellers VS Business Evaluation which require less information and less Seller involvement.
  4. Certified Business valuations are typically more expensive and can go up to $30,000+ ,VS business evaluations are cheaper and typically cost up to $5,000.

What will I need for a business evaluation?

For a business evaluation from one of our Business Brokers, it typically starts with an initial 15-minute consultation to learn about the business and all products/services offered, and to ensure it can be properly evaluated. Next, the business owner will most often need to provide the following documentation:

  • 3 Years Trailing Company Tax Returns
  • 3 Years Trailing Annual Profit and Loss Statements
  • Current YTD Profit and Loss Statement
  • Current and Updated Balance Sheet

There may be additional items that can be requested throughout the process depending on the business. If pursing a certified business valuation, you will typically need to provide the previously listed information, as well as additional documentation requested by the CVA. Some of the potentially requested information could include; monthly P&Ls, equipment lists, inventory sheets, AR/AP aging reports, GL’s, Additional company and personal tax forms, and more.

Call now for a free consultation
CONTACT US TODAY