Business Valuation Checklist
A Business Valuation is an estimate of the value of an owner’s interest in a business. This estimate is based on a number of factors. As you plan, strategize and grow your business, consider the following to maximize its value.
- Size – What’s the size of your business and corresponding Profit?
- Recent Trends – Are sales up or down?
- Re-Creating Past Success – Would a buyer feel confident they could re-create your revenue and profit year after year?
- Would they be able to retain your key employees?
- Would a buyer be at risk of losing any large customers?
- Will the cost structure of the business change significantly after a sale?
- Improvement & Expansion of the business – Is it possible?
- Location – Is your business in a major metro area, secondary market?
- Timing – How does the investment world view your industry and/or sector…Hot – Neutral – Cold?
- Financial Records – Are your systems and reports organized, accurate and timely?
- Protected Revenue – Have you adequately secured business revenue by finalizing facility leases, sales contracts, operating and employment agreements?
- Compared to the average business in your industry, is your business larger, smaller or average?
- What is the average annual revenue per full-time employee?
- What is the average annual revenue per revenue-generating employee?
- Are employment agreements and non-compete agreements in place for your key revenue-generating employees?
- What is the average annual revenue per branch? (i.e.: office, location or store)
- Do you track profitability by branch?
- Do you regularly consider closing or re-locating underperforming branches?
- In the last two years, has revenue trended up, down or been stagnant?
- Are you forecasting revenue to increase or decrease in the next 12 months vs. the last 12 months?
- What growth opportunities exist for your business?
- How broad is your customer base or are you dependent on a few large customers?
- Have you considered how to expand your customer base?
- Is that an ongoing process or only when you lose a large customer?
- If you have already decided to sell your business…
- Are you current with industry news and buyer news?
- Do you have a list of potential buyers or a preferred buyer in mind?
- Do you know how to approach a buyer?
- Have any buyers approached you in the last two years?
- Are there ways to improve your business prior to a sale?
We can help you answer & address these key questions as well as provide a current business valuation. Let’s talk about your business, your priorities and timeline. Contact us.