what is the value of my business?

“What is my business worth?” More often than not, this is the first question a client will ask us. It’s a good question, although there can be a wide range of answers. Business valuation is both art and science. The business brokers at Synergy Business Services have experience using a variety of valuation techniques to analyze the value of a business in Arkansas, or anywhere in the U.S. We work closely with clients to determine a realistic asking price that will bring maximum value for the business while attracting serious, qualified buyers.

Getting to know you and your business.At Synergy Business Services, we find that the valuation process provides a great opportunity to get to know both you and your business. It’s also a good time for Sellers to get an understanding of how we will work together as a team to get maximum value for your business. You will get a sense of the dedication and passion that we have for working with business owners, and in most cases we find that we would be honored to represent your business for sale in the marketplace.

Most of our competitors charge upfront fees for a business valuation, but we believe so strongly in the benefits of going through this process with our clients that we offer our Standard Business Valuation at no charge (a $2,500 value)!

Setting realistic expectations.Some Sellers know exactly what their business is worth, while others either have no idea, or have their heart set on that “magic number.” While our goal is to get Sellers the maximum value for their business, we also look at the transaction from a Buyer’s perspective. That means determining an asking price that will generate nationwide interest amongst serious Buyers, and compel them to inquire about the business and submit an offer.

Cash Flow is king.There are several methods used to value a business. Some of these include the Income Approach, Excess Earnings Approach, Capitalization of Income Stream, or using a weighted average of more than one method. While Synergy Business Services has the capabilities to value a business in many different ways, our Standard Business Valuation approach is to use a multiple of Cash Flow (also referred to as Seller’s Discretionary Earnings or Owner’s Benefit), which we arrive at using data from transactions in similar industries across the country.

While financial metrics are the driving force behind business valuations, there are many intangibles to consider. The business brokers at Synergy Business Services have an in-depth understanding of business valuations in Arkansas, Oklahoma, Missouri and throughout the south central U.S.

What we require from Sellers. In order for Synergy Business Services to perform a Standard Business Valuation, we need the following items from Sellers: