What Your Business
HERE'S WHY YOU SHOULD...
Get what it is worth at the sale.
Create a succession plan.
Create buy/sell agreements with business partners.
4 TYPES OF BUSINESS VALUATIONS
ASSET SALE VALUE
This common, transaction-oriented, fair market value conclusion includes the business’s inventory, furniture, fixtures, and equipment, as well as all intangible assets ranging from customer base to goodwill. Excludes all liquid financial assets.
EQUITY VALUE
This fair market value conclusion is the value of the company available to its owners or shareholders and incorporates all of the assets included in the asset value, plus the firm’s liquid financial assets (cash, A/R, deposits), minus liabilities.
ENTERPRISE VALUE
This fair market value estimate is equal to the total value of the business, or the value of the business’s equity plus its long-term debt. It reflects the value of the entire capital structure (equity holders and debt holders) or “enterprise”.
LIQUIDATION VALUE
Liquidation value is based on the key assumption of insolvency and the immediate sale of all assets (on or off the balance sheet) at or near “fire sale” level, coupled with the nearly simultaneous retirement of all liabilities. This value estimate does not include accounts receivable.
Schedule your Business Evaluation Discovery Call
Click the button to schedule a complimentary business evaluation discovery call with Mark McNulty to learn more about the process and which type of valuation makes the most sense for your situation.