The first step…

is to understand how much is your business worth.

Valuations of previous successful transactions exemplify it best, demonstrating that different sized companies require different methods and capabilities. One client’s accountant said his small business may not be worth the trouble to try to sell and will probably go for $45,000 to $50,000, and should consider only selling his equipment and customer list. We calculated the valuation and sold the company for $100,000 plus an extra $30,000 for the equipment.

Another example, several competitive brokers gave valuations using complex computer calculation programs valuing a company from $320,000 to $440,000. We applied a good old fashioned financial pencil and paper analysis of all aspects including SDE (seller’s discretionary expenses) along with financial computer programs, listed the company for $875,000 and sold it for $775,000.

Larger companies are much more complex and computer valuations and adjustments work better for them than for smaller companies but this exemplifies that our approach to different size companies works better than having a “one approach fits all” with all sized companies.

Accountants, banks, attorneys, real estate agents, family members etc. all may have an idea for the valuation of your company from their perspective and profession. JA Walter will apply industry-proven techniques to assist you in determining the fair market value of your company in todays’ marketplace.