Charts and spreadsheets used to determine business valuation
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5 Benefits Of Getting a Business Valuation

The corporate world is becoming more volatile and dynamic. The Internet has created new threats, and new players are emerging on the scene. Businesses are struggling to keep up with global changes. The business valuation report is one of the most important steps in surviving this change. A business valuation is a comprehensive analysis of a company’s assets, liabilities, and performance. It helps make important decisions regarding the company’s financial picture. The following are some benefits of getting a business valuation.

1. Helps to Know the Performance of the Business

A business valuation report helps you to know the performance of your company. In recent times, there have been a lot of changes in the business landscape, and businesses should be able to respond in a very flexible way. Most companies base their decisions on their perceptions of the market and on what has worked for them in the past. This can be dangerous because it prevents them from taking risks when necessary or changing with the times. A company that hires a business broker in Florida to perform business valuation can understand its performance and make decisions accordingly. This will help them set clear goals and to identify the areas that need growth or development.

2. Gives Access to More Investors

Those already in the business will benefit from a business valuation. The report will serve as a powerful marketing tool and help them attract even more investors. They will have an interesting story to tell, especially with the help of the business broker in Florida. This can be extremely handy if they are trying to raise funds for a new project or their existing operations.

3. Helps to Resolve Partner Disputes

Another benefit of getting a business valuation is that it helps to resolve disputes. Businesses have always been involved in disputes with their partners or employees. This can be very damaging to the company and the owner’s reputation. The business valuation performed by business brokers in Florida will help a company take necessary actions not to cause additional damage to its reputation.

4. Helps to Prepare for Merger and Acquisition

Businesses can also benefit from getting a business valuation before mergers and acquisitions. A business valuation report plays an important role in understanding the performance and financials of the company. It will help a potential buyer to decide the terms of the value and price of the company. The report will also help to draft an effective due diligence process.

5. Helps to Prepare for a Sale

One of the most important benefits of getting a business valuation is that it helps you prepare for a sale. People often think that a business valuation does not help to sell the company because it is not about making money. However, this is inaccurate because there are some instances in which selling a company can be highly profitable. This is the case when there is a strong buyer in the market or a good value proposition. A company can cash in on a good offer, which will help maximize its profits.

Conclusion

Many business brokers in South Florida offer business valuation services. Before choosing one, it is important to understand how they work and how they can benefit your business. Deriving the right value for your business is not easy, but it is simple with the right strategies and tools. At Anton Joro, we are expert business brokers in South Florida who provide business valuation services. Our team will assist you in getting the best results for your needs. Contact us today to learn more about business valuation.

Owner calculating value of business
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Why You Should Know the Value of Your Business

Being a business owner is difficult, especially in today’s economic climate. If you want to survive this long, you better know the value of your business.

A company’s value estimates how much someone would be willing to pay for all its shares and assets. The higher a company’s value, the more likely that firm is to stay afloat without external help in times of crisis. Here we will explore why performing Florida business valuation is essential.

1. You Plan to Sell It

Mitigating a possible sale is important in the business world. You will want to know how much your business is worth so that you might be able to make a more intelligent decision when it comes to selling it. Should you consider selling it now, or should you wait for the right buyer? These are questions that businesses have asked themselves to come up with a start and end point for an ideal outcome.

2. You are Raising Capital

If you think of expanding your operations or financing a project, you need to know the best value for your company. Licensed certified public accountants and business valuation professionals will help you get the most out of your business. They have years of experience in providing this service to companies, so they know what can give you the best results. With their help, you can rest assured that you will get the best possible valuation for your business.

3. Support Estate Planning

Since the value of your business has implications for estate planning after you no longer run it, you need to plan for the future. You can do this by knowing the value of your current business to know when it is time to sell it. You can then look at your estate plan and see what type of arrangements will be best for your situation.

4. Attracting Investment

As a business owner, you have probably considered starting a business to make extra money. You may already be running one or have considered it in the past. Today, you need to be able to attract investors. This is where performing Florida business valuation can help you. By learning more about your company’s value and how that affects its price tag and value, you can confidently approach potential investors. You need to be able to maintain investment levels and revenue growth. To do this, you can use Florida business brokers to help you get the most out of your business to maximize its value.

5. Insurance Coverages

Insurance is an important part of a business. You can use it to mitigate any losses that you might incur. This is why it is important to know the value of your business when getting insurance. If you have too low of a premium, it could mean your insurer does not properly protect you. At the same time, if you have a high premium, you may be paying unnecessarily high rates. Knowing the value of your business can help in this situation because it will show how much risk your company has.

Conclusion

With all these benefits, learning the value of your business should be a top priority. This is why performing Florida business valuation can be so valuable. It will help you make decisions that can positively affect your future. Anton Joro is a Florida business broker who helps clients with business valuation. Call Anton Joro today or request a free consultation if you want to learn more about the value of your business and the various ways it can affect your future.

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When Is The Best Time to Purchase a Business?

There are more opportunities than ever before to purchase a business in today’s economy. The question of when to purchase a business is a tricky one. It’s an age-old question that’s still relevant today.

There are many factors to consider, from the current market conditions to your financial situation. So how do you know when the time is right? Here are a few things to keep in mind. 

1. Do Your Research 

It’s essential to take the time to do your research before making any major purchase, including a business. Buying a business is a big decision, so it’s essential to do your due diligence before making any offers. Research the industry and the company’s financials, and talk to other business owners in the same space. If you are looking to purchase a business in Fort Lauderdale, FL, many qualified business sales brokers can assist you with the process. 

The critical thing about the research is to make sure that it is in good shape and read reviews from past customers or clients to understand how well the business operates. That will help you better understand what you’re getting into and whether or not it’s a good fit for you. By doing careful research up front, you can feel confident that you’re choosing the right opportunity. 

2. Consider Your Goals 

What are you hoping to achieve by purchasing a business? Are you looking for a hands-on role where you can be heavily involved in day-to-day operations? Or are you looking for a more passive investment? It’s essential to align your goals with the type of business you’re looking to purchase. 

3. Timing Is Everything 

The timing of your purchase can significantly impact the price you pay for the business. If you’re looking to buy during a recession, you may be able to get a good deal. But keep in mind that businesses often take longer to recover from economic downturns, so you’ll need to be patient and prepared for a long-term investment. 

Get in touch with a qualified business sales broker to help you weigh the pros and cons and help you to understand better the current state of the economy and market conditions. If you are in Fort Lauderdale, FL, and are planning to buy a business, Anton Joro is your go-to consultant. Anton offers unique insight into a client’s business transactions, including careful guidance and commitment. 

4. Have Realistic Expectations 

It’s essential to go into the purchase with realistic expectations. Buying a business is not a quick or easy process, so it’s essential to be prepared for bumps in the road. Have a solid plan and work with a qualified broker who can help you navigate the process. 

5. Know Your Financing Options 

In addition to looking at broader economic indicators, it is crucial to consider your financial situation when deciding whether now is the right time to buy a business. Have you saved up enough money to invest? Do you have access to additional funding if necessary? Are you planning on using existing assets, such as your home or retirement funds, to make the purchase? These are essential factors to consider when determining whether you can afford to buy a business now. It’s crucial to understand your options and choose the best one for you. 

Conclusion 

Ultimately, there is no one “right” answer to when is the best time to buy a business. The decision depends on a variety of factors. By taking all of these listed factors into consideration, you can decide whether now is the right time to pull the trigger on a purchase. To know more you can contact the Office of Anton Joro or call (954) 507-5050 today.

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The Importance of a Business Valuation for a Divorce

Divorce is a complex procedure that becomes even more complicated when a business is concerned. In the valuation of a business, it is necessary to conclude upon the equitable allocation of marital assets.  

Usually, the separating couple ends up arguing about the company’s value. Questions such as is one spouse going to buy the other spouse’s ownership? Do both spouses have rights in the business? Is the business a marital asset? These call for a corporate evaluator to offer their knowledgeable view to aid the court in deciding the value.  

Let’s learn the importance of preparing a business valuation when going through a divorce.  

You Cannot Assume A Fair Market Value  

The majority of business owners often confuse the efforts they put in altogether with fair market value. Corporate owners’ observed business value is a sum of net income, gross revenue, or just a figure they have thought of for themselves, which is far from reality. However, relating a multiple to a figure in assessing a business may be imprecise, and there are other ways to find out the company’s actual worth.  

Not every business is the same, so the fair market value differs. Once an expert has performed a business valuation, the corporate owners are aware of their corporation’s actual worth and are better prepared for negotiation and court.  

An All-Encompassing Evaluation 

It is standard for one partner to be severely involved in the ins and outs and the business’s ownership compared to the other spouse. Usually, the detached spouse is the one who is in less financial need than the other spouse. They might have a good income source, whereas the concerned spouse might struggle daily to keep revenues.  

A separation case happens when a business valuation is done, it considers the company’s past financial information and its predicted upcoming profits and expenditures, which helps control a fair market value. Due to this detailed business valuation, both the spouses get equal and sometimes more/less depending on how financially stable they are. The purchase price has to be identified, and only then can the split be done.  

It Increases the Likelihood of a Mutual Agreement  

A business valuation brings both parties a feeling of the process being ‘fair.’ When both spouses think that a business valuation will get them the fair price, they are more prone to agreeing upon things and getting an agreeable divorce settlement. At the time of a business valuation, both parties need to be well-versed in the fair market value, which will help raise the possibility of deciding on a reasonable price.  

There are always some changes and negotiations done, especially when qualified evaluators are involved on each side. However, there are still high chances of both the parties agreeing on a mutually decided price without being harsh towards each other.  

Ways To Go About It 

When the question ‘who manages the business valuation throughout the divorce’ arises, there are several options that the partners have. The first one is that they can find out the business value independently. It’s undoubtedly a bad idea and will not get accurate results. The second is employing a shared forensic accountant for the business valuation during the separation. Since this will be someone both the parties trust, it will be easier to get to a clearing. However, they don’t provide any advice.  

And lastly, both spouses can hire a professional lawyer/accountant for a business valuation. If the spouses don’t trust each other anymore and wish to get separate business valuations done, they can appoint separate ones and then have a mutual discussion.  

If you’re going through a rough divorce and need a business valuation done as soon as possible, Anton Joro is your man – he will help you with the entire process. He is one of the finest for the Mergers & Acquisitions Division in Fort Lauderdale, FL. He will value, negotiate, advise, and get you the most of your money. To learn more contact Murphy Business Sales at (954)-507-5050 today. 

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Why Perform a Machinery/Equipment Appraisal?

If you own a business that has existed for a long time or has just started, you may have heard the term “Machinery Appraisal” or even “Equipment Appraisal.” Most business owners are advised to conduct this appraisal at least once every year to know how much their business is worth tangibly. 

Businesses include a lot of assets and liabilities. If you’re thinking of selling your business or even expanding into a new one, you must know about the money your equipment is worth. Thus, an Equipment Appraisal is necessary. 

Why Is an Equipment Appraisal Important? 

Equipment Appraisals are necessary to know the actual worth of your business. We have listed a few reasons why Equipment Appraisals are important. 

  1. It can provide you with a complete analysis of the value of your machinery. You would know what you’re looking at when you wish to buy, sell or upgrade this equipment. Having this knowledge prevents you from facing any loss in your dealings.
  1. An official Equipment Appraisal means that you will have the resources and a detailed analysis report on what developments to make for the growth of your business. Having an analysis and a report means that you have something tangible to base all of your decisions on, which can be extremely useful. 
  1. An external firm does an equipment appraisal, which means it can limit any biases you have for your business. You are likely to get an honest look into the position of your equipment. 
  1. An Equipment Appraisal is also evidence or proof of the worth of your company. It’s one of those extremely important documents that are required when you are filing an insurance claim. If your machines are destroyed or face an issue, you need to know the most current value of your equipment, so your insurance pays you the same amount. It can’t be anything more or less. 

When Would You Need to Perform Equipment Appraisals? 

Many people claim that you should have an equipment appraisal done at the time you get the machine. This practice helps cement your insurance claims if they were ever to arise. We have also listed other times you need to perform an equipment appraisal. 

  1. Mergers and Acquisitions 
  1. Business Valuations 
  1. Bankruptcy 
  1. Financing and SBA lending 
  1. Insurance 
  1. Buying/selling agreements 
  1. Property taxes 
  1. Partnership dissolutions 

How Long Does it Take For an Appraisal to Occur? 

Many factors dictate the length of time it will take for an equipment appraisal to be conducted. First, it depends on the amount of equipment being appraised. The more the equipment the longer it will take.  

The other major factor that affects the time taken for an appraisal is the timing requirements. When do you need the appraisal? How many levels of valuation do you require? How rare is the item that you’re having appraised? The greater the levels of valuation and the rarer the item, the more time it will require for the appraisal to occur. 

How Much Will an Equipment Appraisal Cost? 

There are many different ways that a firm will evaluate how they’re going to charge you. The three major ways are: 

● Amount of Line Items 

● Amount of Time 

● Flat Rate 

Before you get an equipment appraisal conducted, you have to know that you will have to pay for it. However, the amount that you pay has much to do with your needs. Every client has different needs. The cost depends on factors, like duplicate items, small cost items that can be combined, time taken to travel, the number of locations, etc. All of these factors can affect the amount of money you have to dish out. Most companies will try to lower their bid unless there’s something that takes them significant effort. 

Murphy Business & Financial Corporation — For All Your Equipment Appraisal Needs 

Establishing a business is not easy, and you need to know how much your business is worth. To properly understand the worth of your business, you will have to perform an equipment appraisal and receive certification. 

If you’re looking for the answer to all your questions about the value of your equipment, you’ve come to the right place. At Murphy Business and Financial Corporation, we give you an unbiased evaluation of the worth of your business and equipment. We have many years of experience under our belt. Our experts have conducted valuations of various businesses over the years and can provide an exhaustive report for your business too.  

If you’re looking for more information on equipment appraisals, contact Murphy Business and Financial Corporation or call (954) 507-5050 and speak to our appraisal experts today. 

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Understanding A Business Valuation Report

Attorneys, accountants, and business owners regularly use business valuation consultants to determine the value of a company or a stake in a company. The valuation can be performed for various reasons, including equitable division in mergers, estate planning, shareholder disputes, and other reasons.  

Business owners seek an objective appraisal of the worth of their company through professional business evaluators. Every company should have an updated business valuation on hand. Similar to a business plan or an updated resume, a current business valuation may help you take advantage of possibilities, safeguard your family financially in the event of your death, and move promptly when it’s time to sell your company.  

If you are looking for a business valuation in Fort Lauderdale, FL, contact Murphy Business Brokers. They perform business appraisals through qualified, professional appraisers with extensive experience in business value and transfer elements. All appraisals are completed by the Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice (USPAP) and the Institute of Business Appraisers’ Business Appraisal Standards. The use of proven peer-reviewed valuation procedures to create defendable opinions of value is ensured by adhering to industry standards. Murphy appraisers stay updated on evolving valuation difficulties and relevant court decisions by participating in teleconferences and annual valuation conferences.  

What is a business valuation?  

A business evaluator analyses and inspects the entire business, similar to how a house appraiser inspects and analyses a residence. Asset appraisal (along with depreciation) and other criteria are frequently included in this process. A business valuation could include a review of the company’s board of directors, capital structure, management, estimates of the market worth of assets, or future earnings projections. Sectors, firms, and evaluators all use various tools for valuation. Examining discounted cash flow simulations, financial statements, and competitor comparisons are all common techniques to value a business.  

Why is it important to have an updated business valuation?  

As nothing is for certain both in life and in business, unprecedented changes can occur at any time. An up-to-date business valuation will help you be prepared to face anything.  

  • It will enable you to reap the benefits of a unique opportunity, such as a chance to sell the company or form a joint venture.  
  • A business valuation will help determine the purchase or sale price when a partner leaves or when you add a new partner or Limited company member to your business.  
  • You may be considering leaving the company. The first step in developing your exit strategy is to get a business appraisal.  
  • If you want to expand your company with a loan or new equity, you need a business valuation.  
  • In case of an accident, an updated business valuation will help with insurance claims and business recovery.  
  • Personal life upheavals, such as a divorce, can also need a business valuation to determine the division of assets.  
  • Something bad could happen to you, such as disability or death.  

How does the business valuation process work 

The foundation and criteria of the business valuation must be defined at the beginning of the collaboration. Fair market value, which determines the investment value that a specific investor may obtain via cost collaborations, and fair value, which represents the investment potential that a particular investor can acquire through cost savings, are two types of value standards.  

The two major foundations of value are ‘going concern’, which believes the company will continue to function indefinitely, and ‘liquidation’, which is the value of an entity’s tangible assets if it were to go out of business.  

The first part of the business valuation process requires the collection of necessary documents from a client, which include:  

  • Income tax returns  
  • Financial statements  
  • Vendor databases  
  • Organizational documents  
  • Schedules for depreciation  
  • List of customers  

A business valuation consultant might consider employing one of three methodologies during a valuation engagement. The Income Approach, Asset Approach, and Market Approach are the three options. Each of these methodologies provides a variety of strategies for valuing a company.  

This is by no means a comprehensive list of current business valuation methodologies. Appraisers also use many other approaches, including break-up value, asset-based valuation, replacement value, times revenue method, and many more.  

The ideal criteria to look for in a business valuation report are the measures that prospective buyers or investors would consider vital to a company’s long-term performance. Business valuation reports provide a scoring system that determines how well a business is performing and is usually all that is required to determine a business’ selling price or to aid in the formation of a buy-sell agreement between partners/shareholders. For more details contact Anton Joro or call (954) 507-5050 to speak to our experts.