What is Your Alabama business worth?
A Local Birmingham Alabama Business Appraisal Company
Alabama is one of the most business-friendly states in the nation, and the businesses proud to call this state home enjoy its business-friendly policies and regulations daily. A healthy business will bring your Alabama company through significant financial events throughout the business lifecycle. In each of these financial events, one essential piece of information will guide you: the true value of your business.
Your Alabama business is so much more than the raw numbers shown on your balance sheet. Knowing your business’s most accurate current economic value is essential to your financial health, and a professional business valuation or business appraisal will provide this.
Whether selling your business, entering into a merger and acquisition deal, estate planning, or securing investment, a business valuation firm will arm your company to face any financial event with the confidence and security you need.
Continue understanding what an Alabama business appraisal brings to your company with our article on what a business valuation is from a local Alabama Business Valuation Firm.
Why do Business in Alabama?
Tax benefits and incentives
With some of the lowest taxes in the country and government policies that favor and support businesses, the business environment in Alabama is highly conducive to success. The state offers small and medium enterprises numerous tax credits and abatements, further enabling and empowering local businesses to thrive. These tax benefits are directed towards small and medium businesses, work to even the playing field, and increase success rates in new companies.
Highly trained workforce
Alabama’s extensive education system comprises 24 two-year community and technical colleges and 28 four-year universities. Also, by offering the Alabama Industrial Development Training (AIDT) program, the effort that goes into educating and preparing Alabama’s community for the workforce is vital. Business owners will find solace in knowing that, in Alabama, the perfect hire is always possible. Strong workers create strong companies, and Alabama exemplifies this.
Are you selling your Birmingham business? Read our article on obtaining a business valuation before you sell your business from a local Alabama Business Valuation Firm.
Strong infrastructure
With a strategic location centrally located in the American South and the Gulf of Mexico, Alabama is seamlessly connected to the rest of the world. With more than 70 airports, six commercial airports, several major cargo airports, over 3,200 miles of railroads, and over 100,000 miles of public roads, getting products and ideas in and out of Alabama is a breeze.
Notably unique to Alabama is the Port of Mobile, a major deep-water port on the Gulf of Mexico that stands as one of the nation’s largest and busiest ports.
How does the future value of your company affect the current value now? Read our article on projections in a business valuation.
When Does Your Alabama Company Need a Business Valuation?
With the many potential financial events your Alabama company may encounter throughout its business lifecycle, business valuation services keep you informed on your actual value and support and guide you through these events.
Some of the financial events your Birmingham company may need a business appraisal for include:
- Estate and gift tax
- Exit planning
- Merger and acquisition
- Buy-sell agreements
- Financial reporting
- Investment opportunities
- Unsolicited offer to buy your company
- Purchase price allocation
- Capital raise
- SBA loan
No matter the scenario, the business valuation specialists at Business Appraisal FL|GA|HI are here to assist you in finding your true value.
Know the meaning of seller’s discretionary earnings or SDE and the effect SDE has on your business’s value.
What are the Different Valuation Methods?
Your Alabama business is unique, and there is no one-size-fits-all valuation method. Among the many business valuation methods, the expert business appraisers at BA FL|GA|HI will always choose the method best suited to your unique situation and circumstances. Here are a few potential approaches that we may use.
Discounted cash flow approach
Often considered the most reliable business valuation method, this approach does well when buying or selling a business and seeking investment. The discounted cash flow (DCF) method represents a company’s value by analyzing sales and profit trends to determine the capital expected to reach the market in the upcoming few years.
Assets-based approach
The assets-based approach is the most widely used method to value a company, and it is determined much like how it sounds: analyzing the value of a company’s tangible and intangible assets. There is more to a company than just tangible assets such as merchandise and inventory; intangible assets, or goodwill, will represent more abstract measures of value.
Learn more about goodwill with our article personal goodwill vs business goodwill, and how goodwill relates to the assets-based method.
Business comparable approach
The business comparable approach works similarly to how houses are valued: by comparing the worth of the business at hand against other businesses of similar size and depth. This method is also often the most misinterpreted, and many business owners may overestimate or underestimate their value against other businesses, producing inaccurate results.
With this common misconception in mind, the certified expert business appraisers at Business Appraisal FL|GA|HI will always only use the most relevant and reliable business to compare when utilizing this method. With us, you will never have to worry about this potential misconception.
Guide to Valuing Your Alabama Business
The valuation methods we may use on your Alabama company do not end here: learn more about the different methods we may use and the valuation process with our comprehensive guide on how to value a business.
Certified Public Accountants (CPAs), Investment bankers, wealth advisors, and SBA lenders trust us to value their clients’ companies as certified valuation analysts CVA. We have 20 years of experience as an Alabama Business Valuation Firm.
Birmingham Business Valuation
With over two decades of experience valuing Alabama businesses like yours, Business Appraisal FL|GA|HI is ready to provide you with our valuation services, too. No matter the financial event on your doorstep, our team of expert valuators will determine the value of your business with the utmost efficiency, decisiveness, tax compliance, and accuracy.
Understand the benefits a business appraisal brings to your Alabama company with our article on the top 7 benefits of getting a business valuation.
No matter your business valuation reason, reach out to BA FL|GA|HI today for a free, confidential consultation with our valuation experts to discuss your situation, the valuation process, the methods of valuation, and if our business appraisal services are right for you.