Why are Valuations so Expensive?
The need for business valuation services that incorporate high-level analysis are driven by the purpose for which the valuation is to be used. Most appraisals are used in divorces, partnership dissolutions, and bankruptcies, as well as for SBA loans and various tax purposes. Needless to say, if an appraiser is going up against a battery of attorneys, the IRS, or the SBA, his valuation must be bulletproof.
Thus, formal business valuations are highly analytical works that must consider every possible contributor to the value of a business. As such, the appraiser must: 1) consider the current state of the national economy; 2) investigate the industry in which the business operates; 3) study the local economy; 4) analyze the company's balance sheets and income statements and compare them to the rest of the industry; 5) determine the appropriate rate of return an investor would expect from such an acquisition; and, 6) research and analyze similar transactions that have occurred in the past. All the above data must then be reconciled in a reasonable and logical manner to produce a single estimate of value.
But what if the above are not your reasons for obtaining a valuation? Maybe you are a business owner who is doing long-range planning for an exit strategy and wish to have an idea of the value of your business. Maybe you are a buyer who is considering purchasing a business. You might even be a banker or broker who needs a quick estimate of value before you expend a considerable amount of time and money to develop a client relationship which may have no future. In these cases you are already intimately familiar with the operations of the company and the state of the economy. There is no intention of using the valuation for legal purposes - it is only to be used to give an owner a solid estimate of value.
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1151 Bramble Lane
Folsom, CA 95630
Office: 209-256-1371
Fax: 916-260-5636
Cal DRE #01381443
Cal DRE #01870000
fred@fredhall.biz
Certified Appraisals Business Sales Mergers and Acquisitions Consulting
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This need has driven the business valuation experts at Affordable Business Valuations to develop a series of methodologies that utilize the most popular transactional databases used by most of today's certified business appraise. These methodologies will produce a statistically precise estimate of the value of a business. The model is computer-generated for speed and accuracy; however, the results of each valuation are thoroughly statistically tested and then reviewed by a certified business appraiser for relevancy. The report will take the reader through the entire process, step by step. It explains how and why all the methodologies and statistical testing are done and will give the reader detailed printouts of all the comparable sales transactions that were used in the analysis Most importantly the report is inexpensive and can usually be produced in a few days without compromising the quality or the integrity of the report. e to
For those who need a quick LOW-COST answer, we provide the low-cost solution!
For business brokers and bankers who regularly need to gauge their clients' worth in the marketplace, we offer volume discounts. Call for a quotedd text.
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Amador Appraisals and Acquisitions, Inc.
dba Amador Executive Properties CalDRE Lic. #01870000
C. Fred Hall III, MBA, CBA, CVA Emeritus, Broker CalDRE Lic. #01381443
1151 Bramble Lane, Folsom, CA 95630 209-256-1371 fred@fredhall.biz