We spend the majority of our days working with business owners. We love helping Entrepreneurs grow their company (or companies) while creating systems to ensure they are making good financial decisions. It’s also imperative that our clients have the ability to know their financial situation. An exciting project of us is valuing a business for purchase or sale. No, we aren’t business brokers, we’re financial professionals! That means we look at the numbers. Whether you’re on the seller or buyer side of a business sale, you want to know that the numbers are accurate.
We review details such as:
Net Assets – This is a review of all equipment and/or inventory owned by a business, minus any debt and/or liabilities.
Revenue – We all know what this one is! Look at the total annual revenue of the business.
Projected Revenue – Using historical details of your business as well as several additional factors, we can assist in creating projected revenue for the business. This allows the buyer to have an educated suggestion of their revenue outlook before making the investment to purchase.
If you are considering buying or selling a business, be sure to contact a finance professional to get an accurate valuation. Both parties will feel better about the transaction after all of these details have been reviewed and valued. As always, a Purk and Associates team member would be happy to help you!
Megan Madden, CPA Donation Time! It’s that time of year… While most retail stores are stocking shelves in preparation for […]