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Business Valuations
Peak Business Valuation provides business appraisals for small businesses across the United States. Sounds broad, right?
Peak primarily works with companies within the $1 million to $10 million in revenue space. The reason being, we have found that beyond providing a business valuation report, we can add value to our clients.
If you think, Peak focus is narrow, we take it a step further and provide the following valuation services:
Business Valuations for Buying a Business
We work with buyers of businesses for one reason. We want buyers to feel comfortable when purchasing a business. As such, a business valuation for buying a business can help increase your confidence in the business purchase.
Determining the value of an existing small business can be a challenge for buyers. Much like buying a house, most buyers offer a price slightly lower than the asking price and then negotiate with the seller from there.
This sounds simple, but what if you could enter negotiations with a sound understanding of the value of that business? This can increase your confidence during the negotiation process.
A business valuation for buying a business is an important part of the due diligence process. As a business appraiser, Peak works with individuals both locally and nationwide providing business valuations for buying a business. We are a key advisor during the due diligence process of buying a business.
Ultimately, our goal is to provide a proper business valuation that gives the buyer an in-depth analysis of the business. The valuation looks at historical earnings, current cash flow, potential profit, future market growth, and risk. Get started with your business valuation for buying a business by clicking on the link below!
Business Valuations for Selling a Business
Determining the value of your business prior to selling is key. If the listing price of your business is too high, you’ll scare off potential buyers or limit the financing option of buyers. If your price is too low, you end up leaving money on the table. As such, understanding the value of your business is best done by obtaining a business valuation for selling a business.
Your goal as a business owner is to identify early on the value of your business in order to better position the company for sale. If you are planning on exiting within the next five years, it is a good idea to know the baseline value of your business today. Then you can develop a strategy to increase the value of your business.
An up-to-date business valuation can help you plan for the unexpected and expected sale. It can also help ensure you get the fair market value of your company and avoid selling for less than the company is worth. Peak Business Valuation, business appraiser, provides business valuations for selling a business for business owners across the country. Obtaining a business valuation to sell a business can help you be prepared and confident in your business sale.
Grow a Business
You may be asking, why do I need to understand the value of my business while I am in the process of growing it?
Think of a business valuation as a check up with your doctor. As with your health, you should be considering the state of your business year-after-year. Why? As a business owner you should be obsessed with tracking performance and understanding if the direction you are heading is adding value to your business or detracting from it.
A business valuation for growing a business can help you understand where your business stands today and the potential for growth. A valuation gives insight into the strengths and weaknesses of your company, value drivers, and how a potential buyer will view your business. Through a business appraisal, you can develop strategies to grow your business.
Every business owner should obtain an annual business valuation that can be referred to. A business valuation provides multiple facts and figures regarding the value of a company by observing market data, asset values, and the company’s cash flows. This enables you to measure growth and plan for the future. To receive an annual business valuation, schedule a consultation below.
Business Valuations for Gift and Estate Tax Planning
As you strive to build your business, your business will reach a point where you are focused on the future. Every successful business owner should look into estate planning as a way to transfer assets to heirs, while minimizing taxes. An essential part of this process is obtaining a business valuation for gift and estate tax planning.
Most business owners have between 80-90% of their personal net worth tied up in the company they own – one highly non-liquid asset. Not only does this make estate planning difficult, but it also exposes the financial legacy you want to leave to your offspring at great risk. If your business is part of your estate, it is wise to obtain a business valuation for your estate plan.
By knowing the value of your business you can adequately prepare to fund future estate tax liability. Whether you are planning on selling, gifting or dissolving your business it is important to have an estate plan in place. This plan can then either pay the taxes or implement strategies to bypass them.
Obtaining a business valuation for an estate plan can either be performed when gifting an interest in your business or after the death of the owner. In either scenario, it is vital to have an estate plan in place. Begin now to develop a strategy to execute it – start with a business valuation for gift and estate tax planning.
SBA Business Valuations
Obtaining a business valuation for an SBA loan is required when the SBA loan is over $250,000.
Peak Business Valuation provides SBA business valuations for more than 100 SBA lenders across the country. If you are an SBA lender looking for an SBA business valuation, Peak is here to help! We offer new SBA lenders $1,000 off their first SBA business valuation. We know small businesses are the backbone of America. As such, we would love to help your SBA lending team successfully close your SBA loans faster than ever before! Reach out to learn more about Peak’s SBA business valuation process.
Peak seeks to help small business owners build businesses that thrive.
As such, we care about whether or not a business appraisal is right for you. Give us a call today, to see how understanding the value of your business is valuable.
Frequently Asked Questions
What is your turnaround time for providing a valuation report?
The average turnaround time for a business valuation is 5-7 business days. Peak specializes in providing top-tier business valuations with valuable insights that others companies don’t provide. We deliver high-quality business valuations at a lower price and in less time than anyone else in the part because of the different approach we take in everything we do. Often the purpose of the business valuation report will dictate the turnaround time.
What is the cost of a business valuation report?
The cost for a business valuation report depends on the purpose of the valuation. In addition, the level of detail that goes into the valuation analysis impacts pricing. As does the size and complexity of the company being appraised. The cost of a business valuation report will be discussed in detail during a consultation call.
What level of detail is in a valuation report?
Peak provides two valuation reports:
- Complete Appraisal – Summary Report
- We provide this report when we work with:
- Mergers or acquisitions
- SBA or conventional financing
- Estate and gift planning
- IRS tax matters
- We provide this report when we work with:
- Calculation of Value also known as Value Calculations
- We provide this report when we work with:
- Assisting an owner or broker with establishing a list price
- Estate planning
- Business planning
- A calculation of value is NOT an appraisal since the appraiser is not concluding to a value. This type of analysis can be a valuable tool for business owners or professionals
- We provide this report when we work with:
- Report details consist of:
- Introduction and background
- Industry review and outlook
- Valuation methods
- Economic review and outlook
- Financial review, financial ratios, and projections
How do you value a company?
We look at three valuation methods in our summary valuation reports:
- Income Approach
- Under this approach, a business valuation expert will dig into the cash flow of the business. The ability to generate cash flow each year ultimately impacts the value of your business. As such, when you are building your business, consider the value proposition of growing your cash flow.
- Market Approach
- This business valuation approach is the most widely used and understood method to value a business. When you want to know the value of your house or car, you do some quick research and find comparable cars or homes in your local area. The market-based approach is just that. This approach looks for comparable companies that are similar to your business.
- Asset Approach
- Rarely, is the asset approach relied upon for purposes of understanding the value of your business. However, there are instances where this approach makes sense. For instance, the asset approach is observed for asset-intensive businesses like manufacturing or businesses with heavy research and development costs. As the approach suggests, the value of your business can be derived from understanding the value of your assets. The idea is to determine the fair market value of your assets less liabilities.
Do you offer rush options?
YES. We offer 3-5 day rush options for an additional cost. Schedule a Free Consultation »
What documents do you require for a business valuation or business appraisal engagement?
For a list of documents that may be required, review our blog post Documents Needed for a Business Valuation. Specific documents needed for your situation will be discussed during your free consultation.
We at Peak Business Valuation work with a variety of small businesses providing business appraisals. As a leading business appraiser in Utah and throughout the country, we welcome any questions you have about business valuations, business appraisals, and valuing a business.
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SBA Lenders We Work With