Summary
An accredited individual who is qualified to determine the economic value of a company or business is a professional business valuator or expert business valuation consultant.
Choose a Certified Valuation Analyst (CVA) professional at BA FL|GA|HI
How do you choose the right valuation analyst for your business?
Choose a Professional Accredited in Business Valuation Services
What is a Business Valuator Professional?
Table of contents
- Choose a Certified Valuation Analyst (CVA) professional at BA FL|GA|HI
- How do you choose the right valuation analyst for your business?
- Choose a Professional Accredited in Business Valuation Services
- What is a Business Valuator Professional?
- What professional performs a business valuation service?
- What is a business valuation professional?
- Does a small business owner need a business valuation?
- What is a business valuation?
- How is a business valuation specialist involved?
- Some of the primary sections of a business evaluator include analyzing:
- What does a business valuation specialist do?
- Business valuation methods include the market approach, the income approach, and the asset approach.
- What qualifications are needed to perform a business valuation?
- The Information a Business Valuator will Need
- Why is the role of the certified business valuator important?
- What about online business valuation calculators to give business value?
- What Does a Business Valuation Cost?
What professional performs a business valuation service?
Your valuation services are done by a certified valuation analyst (CVA) at Business Appraisal FL|GA|HI. As business valuation specialists, we only do business valuations. A certified senior appraiser will supervise and sign off on your work so you can have great data when making decisions.
We specialize in financial reporting valuation services for mergers and acquisitions.
What is a business valuation professional?
A business valuation professional is an accredited individual who is qualified to determine the economic value of a company or business. At BA FL|GA|HI, we have a team of professional and certified business evaluators looking at your value drivers.
In Canada, you will see Chartered Business Valuator (CBV), accredited finance professionals with extensive knowledge and expertise in the specialized field of business valuation. In the United States, you will see accredited senior appraisers (ASA). The National Association of Certified Valuators and Analysts (NACVA) supports the users of business valuation and financial legal services. We are NACVA members and Certified Valuator Analysts or CVAs to create a certified market value for your small business.
Does a small business owner need a business valuation?
Operating a business involves many aspects. Internally, business owners must ensure that production, operations, and sales are effective. In addition, company leaders may try to establish a partnership, settle ownership disputes, buy-sell agreements, expert witnesses, mergers and acquisitions, purchase price allocation for tax planning, or bring in a third party. You need to know the fair market value of your business for many reasons.
However, within a business’s life cycle, owners will benefit from helping with a business valuation professional—like those at Business Appraisal FL|GA|HI, who have 20 years of experience doing business appraisals. We are dedicated to doing business valuations for business owners and their advisors.
Read our guide on how to choose the best business appraiser for your small business cash flow income. With our 20 years of experience doing business valuations throughout the United States, we have a business valuation product for you, no matter your business size or valuation reason.
What is a business valuation?
A business valuation or business appraisal determines a business’s current economic worth. To complete the valuation, an accredited business appraiser analyzes all parts of the company to determine the value of their components and their sum.
Your business is an economic engine, and you must pay special attention to its actual cash flow during the valuation process. This is the job of one of our business appraisers or one of our trained, certified valuation analysts. We also offer business valuation services throughout the United States, with offices in Florida, Georgia, Ohio, and Hawaii. We aim to understand your subject company and align our valuation services with your needs.
Read what a business valuation is and what a business valuation firm is to help determine a business’s worth or fair market value from a certified business appraiser.
How is a business valuation specialist involved?
Business owners who need a fair estimate of their company’s market value often consult these professionals. As business valuations are increasingly needed and specific financial standards are more accepted, the demand for business valuation specialists will continue to increase.
A certified business valuation by an accredited Business Appraisal FL|GA|HI team member takes strategic and in-depth analysis to determine an accurate estimation of a company’s worth. The complex process involves various considerations, calculations, and studies when creating certified business valuations.
Although working with these professionals often takes several weeks, the comprehensive valuation report produced will make the wait worthwhile.
Some of the primary sections of a business evaluator include analyzing:
- Financial options for exit strategy planning and retirement
- Financial reporting valuation services for mergers and acquisitions.
- Analyze earnings before interest taxes
- Valuation reports for buy sell agreements
- Gift tax planning valuation opinions
- Cash flow before taxes, cost reduction, and debt reduction
- Business risks and rewards via an investment strategy
- Litigation support and decision making
- Tax assumptions for estate planning
- Tangible and intangible assets of a company
- Purchase price distributions for tax and financial reporting
- Granting of stock options
- Future earnings projections and cash flow method
What does a business valuation specialist do?
Our expert business appraisers work with various businesses across many industries to ensure an effective analysis of the company’s value and business worth.
Many certified public accountant firms or CPA firms have valuation practices. However, your CPA can’t do your audit and valuation as it is a conflict of interest. Many small CPA firms or accounting firms send us their valuation work when their customers need to know the value of a business.
Please read our comprehensive guide to business valuations.
Although the reasons for obtaining a business valuation may vary, appraisers’ approach to conducting such analysis tends to be standard. In general, they assess a business’s financial health by considering its team, assets, earnings, growth, and losses within the context of its specific industry.
There are, however, a variety of methods that a business valuation specialist may use to determine a valuation.
Business valuation methods include the market approach, the income approach, and the asset approach.
- Market Approach—With this approach, the evaluator will consider similar businesses’ selling prices and use data to estimate your company’s worth. Competition is the driving force behind this approach to establishing your company’s value. Thus, this technique is similar to that used in a home’s value appraisal. However, it will compare your and your competitor’s cash flows.
- Income Approach—Depending on the specific formula used, this approach capitalizes, discounts, or multiplies the current cash flow. This helps determine the company’s future financial value. At its core, the method considers the expected economic benefit and level of risk that would come from an investment in the business. We will give you the present value of your business’s discounted cash flow to determine your business’s worth.
- Asset Approach—In this method, the appraiser summarizes all the tangible elements of the business. The appraiser considers all equipment, stock, and supplies separately before adding them. This total dollar amount becomes part of the business’s overall value to potential buyers or shareholders.
Each approach, although unique, will provide you with an estimate of the company’s worth from a different perspective. We will walk you through the business valuation process.
Read a professional valuation gives your business’ true worth. We can also include your real estate appraisal in our work if applicable. Let our business valuation specialists walk you through the valuation process. Let our professional business evaluators give you the market value of your business.
What qualifications are needed to perform a business valuation?
Individuals interested in serving as business valuation specialists would need the proper training, specifically training through a business valuation accreditation program. Courses are often offered at organizations or with third-party trainers, and testing is a crucial part of the training.
Accredited members pay an annual fee to maintain their membership in the organization. Valuation professionals and specialists must take part in continuing education and training programs.
Business valuation specialists can obtain accreditation from a variety of organizations. Our Accredited Valuation Analysts (AVA) at BA FL|GA|HI is approved to perform business valuations that conform to all Internal Revenue Service (IRS), American Institute of Certified Public Accountants (AICPA), and the National Association of Certified Valuation Analysts (NACVA) Professional Standards.
The Information a Business Valuator will Need
We have a comprehensive list to value a business. However, at the very least, you should gather the following data so we can create your fair value measurements:
- Business financials, including Balance Sheet & Income Statement
- Cash flow statements
- Growth potential and forecast
- Tax Returns
- Employee count and org chart
- A/R and A/P aging, if applicable
- Working capital needs and financial projections
- Asset lists, both tangible and intangible assets, like websites and intellectual property
- Professional licenses, business licenses, and permits that are needed
- Client or Customer Base and Vendor Concentrations
- All operating and management processes
- Any partner ownership agreements
- Sales pipeline and sales agreement
- Copies of any leases or rental agreements
- Business loans or bank loans
- UCC filings on the business’s assets
- Business plan, if available
- Your capital structure
- Reason for selling your business
- Personal assets not staying with the business
Why is the role of the certified business valuator important?
Professional valuators are vital to the functioning and success of many companies. For example, you may need an honest appraisal to obtain a business loan, for financial reporting, or for a business sale. This is often the case if the lender is a traditional bank that can only use certified business appraisers.
You may also seek a valuation to establish a partnership, settle ownership disputes, or bring in a third party. A business appraisal may even be needed if you plan to gift a portion or more of your business for estate planning purposes or a purchase price allocation. We can provide deep-dive business valuation analyses that meet your financial reporting needs.
Please read what is a business valuation expert or certified valuation analyst CVA. Your business is worth more than its book value. You can also read what should be included in a business valuation.
However, such valuations may not always be ordered by the owner. An entity, such as a commercial lender, legal practitioner, IRS tax official, or court, may require an independent business appraisal. Whether you or your lender order the valuation, you get the same caliber of business valuation specialists as us.
Here is our short guide on choosing a business valuation company or business appraiser for small business owners when selecting valuation services.
What about online business valuation calculators to give business value?
You get what you pay for, and a free business valuation calculator makes for a good cocktail party discussion. Still, SBA lenders, the courts, estate tax, and the IRS want a higher quality product when determining a business’s worth for the business owner and tax reporting. You should not use a free online business valuation calculator for divorce proceedings or legal matters. The courts have specific requirements when it comes to business evaluators or business appraisers.
What Does a Business Valuation Cost?
We have an in-depth article on the cost of your business valuation. However, depending on the complexity and the audience, you can pay from $3100 to $9700 for certified business valuations for in-depth business valuation analysis.
What is a business valuation professional conclusion:
Whether you need financing to expand your operations, bank financing, or to plan for succession, an independent and accurate business valuator is a crucial asset to your business plan. Our business appraiser work helps determine your company’s true economic value, so you can better manage it and have a base for solid business planning.
Even SBA lenders throughout the United States trust our business valuation services and certified valuation consultants. Whether you own a small business or are part of a holding company, we have a valuation for your budget and time frame. We can incorporate the data from commercial real estate appraisals into our work.
Connect with our team of expert business appraisals or valuators today. With 20+ years of valuation experience, we want to be your valuation company and supply you with a fast and cost-effective valuation report of your business.
Business owners and their advisors turn to BA FL|GA|HI for our fast and cost-effective business valuation reports services from our business valuation experts accredited in business valuations.