A business enterprise, like any asset, is worth what a buyer is willing to pay. Buyers ask countless questions, but they are primarily concerned with a fair return on their total investment. In addition, prospective buyers make many judgments about market position, proprietary know-how, competitive strengths, quality of the assets, growth potential, and risks of the business. As professional business brokers we help the business owner determine the true value of the business, and, more importantly, can help prospective buyers understand the reasons for such value and structure a sale that maximized the benefits of buyer and seller.

We offer two types of valuations, both of which are accepted by the SBA and most conventional lending institutions. The first of these, The Business Valuationis an appraisal methodology, as well as an excellent marketing tool. It is similar to “compiled” financial statements. The Appraiser accepts at “face value” facts presented by the business owner usually in the form of the tax returns.  Done properly, with the right marketing enhancements, the valuation also becomes an invaluable asset in the search for the right buyer match. This method is particularly appropriate for local area businesses especially service type businesses.

Through our RWS Business Valuation Services, Inc we can provide a much more “in depth” analysis of the business. This service is unique in that it looks at the business as an investment opportunity through the eyes of the buyer. The typical valuation system presents a valuation from the traditional evaluation of the assets and liabilities that has been prepared with an eye to tax avoidance. The banker looks at the traditional cash flow analysis to determine if the business can support the loan payments. The RWS valuation presents the business as an investment for a potential buyer. What is the true Sellers Discretionary Cash Flow? What return can an investor expect to receive on his investment in the business? What are some ways that the investor can leverage his investment by financing the sale? What is the value of this business as a "Going Business?" What are the NINE different ways of valuing the business that the RWS process uses? Which of those methods are best suited to THIS business? Why? Can the investor expect a reasonable salary for himself? How can the investor improve and grow the business? This is just a sampling of the many more questions that are asked as part of the valuation service.

These are questions that the traditional valuation process does not address or even acknowledge. A business is more than a collection of assets and liabilities. It is a living, breathing entity, an investment opportunity. By helping your clients see this difference you can render a much greater service for your clients than the usual analysis. You can help your clients realize the top dollar should they decide to sell their business. But the valuation is also fully justified in the eyes of the buyer. This leads to a win-win so all parties can be comfortable with the transaction.