Business Appraisal Alberta

  Sell a Business – Buy a Business – Start a Business
                        Evaluate a Business – Website Search Problem

        Before you put the your business on the market,
make sure you are asking the right price.

Proper evaluations are a detailed process:

            Evaluating a business is not a simple process, nor can an exact result be achieved. The process provides a theoretical value that will give a close estimate of the fair market value of the business.  Probabilities of asset value are compared to market demand and actualities.

Evaluations should only be handled by qualified experienced business consultants. Uniqueness of each business always effects the final estimate. A fair market value conclusion will be reached after such things as market strength, growth curve, economic cycle resistance and break even ratios are concluded. 

         Business appraisals must not be considered absolute but a starting point to reflect upon. Even by taking multiples of the net profit using the EBITA formula are not absolute. The actual value of the business is the price at which the buyer and the seller finally agree to contract a deal.

The following list is a breakdown
of the

various information needed to assess the value

of any business
        –  Hard asset value   
                     –  Equipment
                     –  Vehicles
                     –   Fixtures
                     –  Inventory
                     –  Supplies
         –  Soft Asset value
                     –  Installation
                     –  Lease improvements
                     –  Intellectual property
                     –  Website & Domain
                     –  Name & Credibility
                     –  Telephone number
                     –  Rights and Patents
                     –  Customer contracts

         –  Good will value
                    –  Net Profit before taxes                  
                    –  Retained earnings                  
                    –  Shareholders loans
                    –  Accounts size ratio
                    –  Revenue vs Large accounts
                    –  Potential growth
                    –  Product market change
                    –  Goodwill value
                    –  Accounts Receivable overdue
                    –  Key long term employee’s
                    –  Tax return trends
                    –  Staff turnover & wages
                    –  Lawsuit or litigation
                                        *   *   *   *
     Business valuations can be handled prior to the sale, purchase, change or winding down of a company, to obtain a mortgage, establish an Stock option, for estate planning, to settle a dispute or simply to produce a portfolio.
Other factors that effect the selling price.         
          * The possession date
          * The training process
          * Carry back mortgage
          * Minor retention of shares
          * Share sale vs Asset sale
          * Lease transfer vs New Lease

* * *


Business Resource Canada

Webmaster:  Cornerstone

  Email:  info@businessappraisalalberta.ca


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