How Much is Your Business Worth?My valuations are confidential and at no cost to you.
Before a business can be bought or sold, a thorough evaluation needs to take place. On both sides of the transaction, the degree of success lies heavily upon the communication of complete and accurate information from the Broker to the participants in the deal. Here are some of the items that I look for when evaluating a business. This list is for most industries; certain industries have a more specific requirement.
1. Financial Documentation
- Past 3 years of tax returns
- Year-end and current year (interim) Profit/Loss statements and Balance sheets
- Monthly sales reports for the past 3 year(s)
- Name and contact information of your Accountant
2. Facility Information
- Copy of Lease and /or Deed
- Complete list of all FURNITURE, FIXTURES and EQUIPMENT owned outright or to be transferred to Purchasers.
- Separate list of other assets, NOT owned – specifying “borrowed”, or “leased”.
- Any appraisals done on the building or property.
3. Business Operations
- Identify your top 5 customers. If possible, what % of overall revenue do they generate? (This information is kept completely confidential)
- List major business suppliers and contracts associated.
- List all personnel: their role in the business, how long they have been employed and rate of pay or salary for most recent twelve month period. (Include yourself.)
- List of all major creditors and balances owed to each.
- Any ongoing or upcoming contractual agreements to be assumed by purchasers (Franchise agreement, distribution rights, employment contracts, equipment leases, security or phone system, etc.)
4. Marketing Materials[Provide the following items as they may apply]
- Price lists
- Menus, Service or Produce offering information
- Franchise documents/contracts
- Company brochures
- Website, social networking sites, (including blogs and articles) and other Intellectual Property
- Product Lists
- Other pertinent information
As you can see, listing a business for sale is not for the faint of heart!
John was remarkable from start to finish; he has sold 2 businesses for me, now. He never lost sight of the end goal. He saved us endless hours of time and money. He carries my highest personal recommendation.Frank Lopiccolo