Business Valuations

A Business valuation is essential when the owner is ready to consider selling the business. Proper pricing of a business for sale is achieved by working with a professional broker, like Midwest Alliance Group(MAG) and third-party valuation firms. After Midwest Alliance Group completes a recast of the financial statements and determines a preliminary value, a decision can be made to utilize a third –party valuation. A third-party valuation provides an objective analysis and reduces conflicting interest

Placing the right value on your business is essential for any of the following purposes:

  • Sell your business at the Fair Market Value
  • Provide the lender with Fair Market Value information for a business loan
  • Plan for a merger, acquisition or stock offering
  • Develop an estate plan or tax plan to protect your wealth
  • Transfer of the business into a trust or create a succession plan
  • Determine the value of assets and liabilities for a divorce settlement
  • Assist attorneys in litigation
  • Settlement of an insurance claim
  • Set up an Employee Stock Ownership Plan(ESOP)

 

A professional valuation reflects the “Fair Market Value” of a business based on recasted assets and cash flow, and conditions in today’s market. Book Value is not an accurate economic perspective; it considers arbitrary deductions from the value of items owned in the business and does not consider the income that the assets generate. Therefore, “Fair Market Value”or “Best Value” is what buyers consider, what banks lend on and what sellers can expect to be paid for.

Contact Us Today!

636-544-3623
denny@magstl.com

 

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