Latest News | American Business Appraisers | Arizona

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 >>>

Three Key Factors in Business Valuation

The three key factors are profitability, growth and risk. Profitability, or more specifically, anticipated benefits will be the most important consideration by investors (i. e., buyers). Anticipated benefits will consider such items as the nature, capital structure, and historical performance. Growth considerations are generally the expected growth in earnings, along with the anticipated outlook for… 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 >>>

Quality of Financial Information – is it Important?

When we develop an opinion of value for a particular operating business, we look at the quality of the financial information as either an additional risk factor or value driver. In business valuation and especially from an investor’s viewpoint, quality of the financial information or truthfulness of the data plays an important role. Everyone has… Continue >>>

Goodwill and its Importance to the Business

What exactly does the term “goodwill” mean when it comes to buying or selling a business? Usually, the term “goodwill” is a reference to all the effort that an individual(s) puts into a business over the years that he or she has operated that business. In a sense, goodwill is the difference between an array… 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 >>>

IRS Estate Audits

The Federal estate tax is a tax on the transfer property at death. It is applied to estates for which at-death gross assets, the “gross estate”, exceeds the filing threshold. Included in the gross estate are real estate, cash, stocks, bonds, businesses, and decedent-owned life insurance policies. Deductions are allowed for administrative expenses, indebtedness, taxes,… Continue >>>

Creating a Reliable Buy-Sell Agreement

A buy-sell agreement can be an important tool in smoothing any business ownership transition, whether the aim is to maintain control, provide liquidity and a ready market for the stock, retain key employees or ensure an orderly ownership transfer in the case of death, disability or divorce. Of course, it’s important to decide how to… Continue >>>

EBITDA Adjustments

At least weekly we are asked to look through a valuation report, and find ourselves saying, “what in the world…?” Most often, the document supplied to us for review, cites earnings before interest, taxes, depreciation and amortization (EBITDA) with adjustments to historical financial information. Adjustments can be perfectly acceptable, as owners run excess personal expenses… Continue >>>

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