Business Valuations New York
Proper valuations for New York businesses are essential to operating and growing a properly-functioning business for several reasons, particularly, to ensure that you have a clear understanding of your market positioning, profits, and competition. Working with a reputable and experienced accredited business valuation firm is important so that you have a clear and accurate understanding of this valuation. It will be equally important to your growth and daily operation as it is to business owners who are considering their options for selling the company.
Considering Selling Your Business? Consult With an Experienced Mergers and Acquisitions Advisor Today
The team at A Neumann & Associates, LLC has been providing in-depth, comprehensive business valuations for clients in New Jersey, New York, Pennsylvania, and beyond since 2003, and this experience is essential when it comes to compiling accurate and fully-encompassing information that will help you accurately value your business.
Don’t Undervalue Your Business!
An accurate valuation for a New York business is important for many reasons, including preparing to sell the company and seeking investments or increasing your borrowing power if you are expanding your business. When business owners seek financial support without a clear understanding of their business’ value, they may relinquish far more stake in the company than is necessary for the amount of investment money they receive, or may find that they have less borrowing power than their established and valuable business should entitle them to.
Avoid Using Tax Information For Valuation Purposes
Business owners often use a combination of tax returns and financial statements to build a financial presentation for discussing the market value of their business; however, this approach does not account for many of the factors that lend to a clear and appropriate valuation. When compiling financial information for tax purposes, there are many things — such as the intangible value of the work that has gone into establishing your business — that is not considered, even though this specific metric is a central factor in determining a true value for a business.
When working alone or keeping calculations in-house, business valuations can be wildly inaccurate due to omissions or misunderstandings about how to account for things like the years of effort that have brought your business to where it is today, your community standing, the benefit of outreach programs, charitable donations, and more – in other words, goodwill is not taken into account.
Important Factors That Go Into Developing an Accurate Business Valuation
When working to value your business, whether for investment purposes or if you are planning to sell, the following are just a few of the many different data points that will go into our calculations before reaching a final figure. Keep in mind that these following factors are only meant to give you a general idea of the many different data points that we will gather and are best discussed with a professional.
Future growth projections are very important to current valuations because a business that is projected to increase 10X over the coming decade will have much more inherent value than a business with equal revenue but a stagnant growth projection.
Profits and Loss History
While past earnings and losses aren’t necessarily great indications of a company in a growth industry, these are important factors to consider while generating a comprehensive and accurate valuation of your New York business.
Market Saturation and Competition
An untapped market or a lack of established competition are both factors that will increase the value or appeal of a company for buyers, especially if your business is established and properly operating in an unsaturated market.
Your business reputation is an intangible variable that will play a significant role in determining the amount of money you can sell your company for. When a prospective buyer is considering their options for purchasing, your established reputation and standing with your community can’t be indicated by something like a P&L statement.
Management and Staff
Your management team and staff are the backbones of your operation, and if a buyer is considering either purchasing your business as a turnkey operation or if he plans to merge your business with an existing company, knowing that there is a reliable, proven team and management is essential when deciding whether or not to making an offer for a purchase.
Contact A Neumann & Associates, LLC To Discuss Your Business Valuation Needs Today
Whether you are considering selling your business or have other reasons for seeking out a comprehensive and accurate valuation for your company, contact us as soon as possible. Our team of experienced professionals understands the importance of discretion and confidentiality throughout this process and will never identify ourselves to your employees or anyone else.
Fill out a brief form about your valuation needs here, or call us at (732) 872-6777 to speak directly with us.
Contact A Neumann & Associates, LLC
If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please to fill out a short form, or call us at (732) 872-6777. We will contact you directly and will never identify ourselves to your employees.