Business Valuation / Denver, Colorado

A true test of accuracy and validity of any business valuation is the price at which a company would willingly change hands in the marketplace.

Business valuation of a privately owned company is both science and art. No two companies are the same – even if they share a common industry. There isn’t a single formula to value all businesses.

Company Broker Group M&A uses a complete, multi-faceted approach to consider all factors relating to your particular company – including the company’s business history, future economic possibilities, hard asset value, intangible asset value and industry comparisons.

Other considerations are factors like history of cash flow, a likelihood of future profitability, competition, changes in the technology, training the new owner, seller non-compete and agreements for consultation, and working capital required. There are many factors in business valuation.

Whether a possible acquisition or divestiture, a partnership buyer-seller agreement, stock concerns, impending divorce, or estate planning, a professional business valuation makes all difference in the world for your business sale. Since there are dozens of reasons to get a business valuation, there are dozens of different degrees of business valuations.

From a pre-visualized selling price for your business to a complete business valuation for tax purposes, Company Broker Group M&A can handle the valuation in-house or we can work with independent specialty valuators.

Risk impacts value! Risk is defined as “the degree of certainty or uncertainty as to realization of expected future returns” Risk takes many forms in mid-size business: size of company, depth of management, reliance on key personnel, company-specific concerns, industry trends, and to a great extent available return on alternative investments (stock market, bonds, t-bills, etc.)

There are three main categories of business valuation: Income valuation, Market valuation, and Asset Valuation. Each approach has many different variables that must be considered.

After a complete evaluation of the most important factors, an analysis of the different possible approaches is performed to map out which methods are the most effective for your particular case.

To put it simply, a business’s purpose is to create income. Evaluating by income places more importance on the probable income future while allowing for risk factors.

The Asset approach places a “fair market value” on the hard assets of a business. Used most often in business liquidation or for businesses that are functioning, but in poor financial shape.

A Market valuation uses actual transaction data from similar, related companies or industries.

When you use Company Broker Group M&A, you can rest assured that your business valuation process will be handled by a professional Denver Business Broker – with confidentially.

WHY CHOOSE Company Broker Group M&A?

  • Comprehensive approach
  • True test of accuracy
  • Professional business valuation is both science and art