Business Valuation: A Key Planning Tool

You may have a particular number in mind for the value of your business.

Unless it is documented and protected by agreements or personal funding, you (or your family) might be facing a huge, disappointment.

Operating businesses and professional practices can have materially different valuations depending on the situation:

  • Asset Sale Value – Includes inventory, supplies, fixed assets (furniture, etc.) and intangibles such as goodwill, trade name, and covenant not to compete. It does not include liquid financial assets or liabilities. Usually there is a new entity.
  • Equity Sale Value – Includes the above assets plus liquid financial assets less liabilities. Likely to include the business entity.
  • Enterprise Value – Includes equity value plus value as an ongoing business. Comparisons to similar businesses and often a multiple of EBITDA determine value. It can also be defined as equity value plus long-term debt less cash.
  • Liquidation Value – The negotiated price at a literal or figurative fire sale where there is no one to carry on the business or no business to carry on. This could be the result of a forced sale or auction due to death of an owner or other tragedy such as a fire or insolvency.

We use a proprietary data base that contains information covering nearly 300 million closely held businesses, professional practices and tax-exempt organizations throughout the United States. This data can be broken out by industry, geography (down to your state, city or town as may be appropriate), and organization size (staff or revenue).

The comparative data based on your organization’s performance and structure enables the system to calculate and compare it to others that are similarly situated. This is important information that you should have.

As an introduction, we are offering a valuation of your business or practice at no charge.

Our process is not complicated:

1

Introductory conference call, video or visit

2

Design a Plan that meets the goals and needs of the parties

a. Business/practice valuation
b. Legal format decision making
c. Documentation and funding

3

Implementation and maintenance of the Plan.

To set a conference call (phone or video) or in person appointment, contact:

Barry Koslow, JD

barry.koslow@secbenne.com
781-724-6695

Andrew Koslow, MD, JD

andrew.koslow@secbenne.com
617-874-1839