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Business Valuation New Jersey


A Neumann & Associates, LLC has been helping companies valuate their businesses by conducting an in-depth analysis to ascertain future earning prospects and present case scenarios.

Are you thinking of selling your business in New Jersey? You might want to do your homework before doing so. If you want to know the economic value of your business to get the right price for it, A Neumann & Associates, LLC can help you with that and a lot more. Contact us for business valuation services in New Jersey.

Business Valuation Basics

If you’re thinking of selling your business, you’d have to determine the right asking price to ensure that you get the exact worth of your business, if not more. This is where business valuations help tremendously, for several reasons, including facilitating the sale of businesses to estate planning.

Business Valuation is an intricate process and requires much consideration. If you don’t want to risk making mistakes, you’d need a professional. A Neumann & Associates, LLC has been helping companies valuate potential business partners for decades. If there’s anyone who can give you precise numbers on your business, it’s us. We use several methods and techniques for accurate business valuation.

Methods of Business Valuation

While there are numerous business valuation methods, we use some of the most common methods to arrive at an accurate figure.

  1. Market Capitalization/ Excess Earning Method

    Market Capitalization is easily one of the most popular methods of business valuation. The company’s share price is multiplied by its outstanding shares. It can give you an excellent idea about the company’s size, which can be used to compare it with other companies.
     
  2. Earnings Multiplier

    The earnings multiplier method is reliable for ascertaining whether a company is flourishing or not. The key factor here is not the sales but the profits. This method uses the company’s current stock price and its earnings per share of stock to determine the relative value of its share. This is called the price-to-earnings (P/E) ratio). Also, the EBITDA and SDCF multiplier is used. The earnings multiplier is an excellent tool for comparison purposes, either between a company’s past and present trends or among different firms.

  3. Book Value
     
    Book value is a simple business valuation method that consists of subtracting the total liabilities of a firm from its total assets.

  4. Discounted Cash Flow (DCF) Method

    In this method, the future cash flow projections of the company are adjusted to arrive at the company’s current market value. The only thing that sets this method apart from the earnings multiplier is that it also considers inflation.

How Can A Neumann & Associates, LLC Help

A Neumann & Associates, LLC offers mergers & acquisition advisory, business brokerage, and professional financial services that can help you with business valuation in New Jersey. We have assisted several business owners over the years in calculating the market value of their company before they sell it for the right price. You can expect us to be discreet in our proceedings and keep your firm’s best interest at heart while working closely with you. 

We are specialized mergers and acquisitions advisors equipped with adequate knowledge and expertise to get the job done swiftly and professionally. You won’t have to pay us anything up-front, and you can count on us to do in-depth research before we provide you with any numbers. You can trust our tested and successful valuation methods, which can assist you with decision-making for your company. We consider the requirements and demands of all our clients and ensure that your project is on our priority list at all times. Schedule a consultation with us now so we can begin working. 

Frequently Asked Questions

What is a business valuation?

Business valuation is a process of ascertaining the economic value of a company in an arm’s length transaction. This is usually done when a particular business is being considered for a sale, takeover or merger. It gives the buyer a general idea of what they will obtain. Many business owners hire help from acquisition advisors for this job, as determining the exact value of a company is tricky and requires various considerations. 

What standards of value are used in business valuation?

Several value standards are used in business valuation, depending on its purpose. Some of the standards of value used for this calculation are fair market value, fair value, investment value, and book value. The book value may not be considered a standard of value per se, but it can help calculate the difference between the assets and liabilities of the company. 


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.

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