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Importance of Business Valuations before Retirement

Most business owners know that planning for retirement is crucial. However, according to Entrepreneur magazine, very few business owners are aware of the true value they have. Many have not taken the necessary steps to receive an accurate business valuation well before considering retiring. This makes it somewhat difficult to ensure they receive adequate value… Continue >>>

When an EBITDA Valuation Multiple Doesn’t Work

Many business owner’s when they want to sell their business, often read about an EBITDA (earnings before interest, taxes, depreciation and amortization) valuation multiples. But when they’re questioned further, what they really mean is they want to sell for a higher EBITDA valuation multiple than discussed in the industry journals. Here, I will identify occurrences… Continue >>>

Seven Critical Reasons for Obtaining a Business Valuation

Estate & Gift Tax Planning When transferring shares in a corporation or interests in a limited liability company (LLC), having a business valuation performed, prior to any transfer, will determine what the shares or interests are worth to help stand up to any IRS scrutiny. If the value of your interest, plus the value of… Continue >>>

Looking Beyond Cash Flow to Build Company Value

A value-minded owner should search for ways to lower the company’s perceived risks to potential buyers or investors by: Creating a formal business plan. Forecasts and projections facilitate due diligence and demonstrate management depth. But buyers might critique a seller’s business plan and modify them with their own assumptions. Budgeted and actual results should be… Continue >>>

Top Five EBITDA Adjustments

Top Five EBITDA Adjustments Oftentimes, earnings before interest, taxes, depreciation and amortization (EBITDA) are used as a proxy for a firm’s operating cash flow. While EBITDA can be interpreted in different ways, this type of earnings stream can be used to produce a value for a business or business interest by the application of a… Continue >>>

Price versus Value

In finance, we use words like price and value, as if they were interchangeable. I have been guilty of this myself at times. It is worth noting, price and value not only come from different processes, but are determined by different variables and yield different numbers at the same point in time. The essence of… Continue >>>

Three Aspects Of A Valuation Professional

As a business owner, at sometime or another you may need the services of a valuation professional. Even so, this doesn’t mean that you necessarily know what a business appraiser does. As one of the country’s leading business valuation firms, Arizona-based American Business Appraisers would like to take a moment to explain and reflect upon… Continue >>>

Do Your Certified Appraisal Services Include Valuations For Small Business Administration (SBA) Financing?

Our certified appraisal services help determine company value for many financial institutions in Arizona and nationwide. This includes performing business valuations for SBA and conventional financing. Our stock valuation services are performed by certified appraisers, who are well-versed in determining the value of a business. Valuation of a company is most often required of a… Continue >>>

Reasonable Compensation Guidance

Adjustments for reasonable or replacement compensation – whether in corporate practice or when conducting a business valuation can be one of the most difficult adjustments to quantify. There are numerous factors that should be considered when adjusting compensation levels. Oftentimes, American Business Appraisers find an individual’s, whether they are the owner or principle within the… Continue >>>

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