Business Valuation Virginia
Establishing an accurate valuation for a Virginia business is essential for anyone considering selling their business or seeking investment opportunities. Many people mistakenly value their business based solely on their tax information and profit & loss statements, but this tells a limited and inaccurate story of the true value of an established business.
Working with the experienced professionals at A Neumann & Associates, LLC is one of the best ways for a business owner to discreetly and reliably value their business with a mergers & acquisitions advisor who can help them understand each factor when calculating this valuation. The firm can offer additional services beyond valuations, such as professional consulting throughout the sales process. If you are a prospective buyer of an established business, we will be available to provide you with our consulting services to ensure that you are making the purchase based on a valuation that is both accurate and comprehensive.
Contact A Neumann & Associates, LLC To Discuss Your Business Valuation Needs Today
A Neumann & Associates, LLC has been providing valuation services to business owners since 2003. With an impressive portfolio of past work, we are prepared to help you through this process to make important decisions based on this significant figure.
We prioritize discretion and confidentiality throughout this process, as leaks about your plans can greatly impact the price that a buyer would pay on an open market. And we will not disclose our relationship or involvement with your business to any of your employees or anyone not specifically authorized to take part in the valuation process.
Read more below about some of the specific factors that go into determining a business valuation accurately in Virginia, and contact us as soon as possible to connect with a valuation advisor who can help you through this important and complicated process.
Central Factors in Accurately Calculating a Business Valuation in Virginia
The following are just a few of the many factors that A Neumann & Associates, LLC will include in our valuation process, each of which illuminates a narrow but important aspect of your business. Keep in mind that the following sections are meant to provide you with highly general examples and are not meant to provide you with any guidance or advice on how to handle these calculations on your own.
Recasted Cash Flow
A business may adjust its profit-loss statement or balance sheet through a process known as “recasting,” which add back expenses that are ordinary or do not have to be incurred by a future owner. These adjustments are important when using tax information as a foundation for your calculations because these tax documents tend to minimize income, whereas recastings tend to maximize income.
Your business standing in your community and target market is a variable that does not show up on a balance sheet or P&L statement but can be just as important — if not more important — than any one of these. A business with a stellar profit for the past year may have undergone recent changes that have turned former customers off from their product. Businesses with a high debt to income ratio may have a substantial amount of goodwill that shows a promising future that will not translate through the numbers.
Another factor that does not show in a tax document is the matter of your business’s market position. A new entrant to a highly saturated market with little room for growth may show impressive financials, but these financials may not have much to do with future growth potential. Likewise, a newer, smaller business with a highly advantageous position and innovative products may be set to capitalize on a massive growth market even if their financial statements do not indicate this potential at this time.
Staff and Management Teams
Your team is one of the most important elements of a strong business future. Translating this strength can be difficult when only relying on your tax forms to generate a valuation for your Virginia company. The A Neumann & Associates, LLC team is highly skilled in accounting for these seemingly abstract or intangible variables in a business when determining a fair and accurate valuation. When a business owner works to establish their own valuation, these factors are often overlooked, and if included, it may not be done properly.
Why Work With a Business Valuation Specialist?
As the owner, you know your business inside and out when it comes to your operations, but this can be detrimental when it comes to assigning a fair market valuation (FMV). The hard work and care you have put into the business over many years may skew your ability to assign fair and reasonable values to each of the many factors that go into this process. More often, you may overlook valuation-specific elements.
Whatever your reasoning for seeking a comprehensive valuation, we are prepared to help you discreetly. Once you have established a valuation, we are available to guide you through selling your business if that is the next step in your process.
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.