How Are Businesses Valued?

The valuation of businesses has grown to be both a science and an art.  To arrive at a defensible valuation a valuation expert needs to follow the standards and norms that have been developed by experts in the business valuation field.  Many well intentioned valuation professionals fail to produce accurate and defensible valuations because they do not possess the knowledge of the "art".  The art portion of valuation comes from the forces of the market and the constant changing dynamic of expected rate of returns for given risks.

There are several commonly accepted valuation methodologies, the following are the most common methods: Capitalization of Earnings, Discounted Future Earnings, Adjusted Book Value, Comparable Price, Excess Earnings Capacity.  The valuation expert will carefully utilize the appropriate methods and also utilize the the applicable weights to each of the methods to arrive with a accurate and defensible valuation.

Buyers (Investors) of businesses place an extensive weight on the business's ability to generate sufficient earnings, since these earnings allow them to 1) pay themselves a suitable salary, 2) be able to service the debt incurred in the acquisition of the business, and 3) receive a appropriate return on their investment.

Why Do I Need a Business Valuation?

A Business Valuation is an important tool because it helps to validate and benchmark the true worth of your company. Once you know the value of your business, you can concentrate your resources on maintaining and increasing its value.

A Business Valuation prepared by a valuation expert serves as a credible value benchmark. Our business valuations are fully documented in a detailed written report and provide you with a realistic, credible, and defensible value of your company.

Why AMERICAN FORTUNE Business Valuations?

Our practical knowledge of market values comes from our daily involvement with Business Sales and Mergers and Acquisitions. Our inside-out knowledge of Business Sales (M&A) and Valuation Methodology results in valuations that are more accurate and credible than valuations prepared by companies that do not have our expertise.

When Is a Business Valuation Needed

Which Business Valuation Is Right For Me?

1. Summary Business Valuation.  A business valuation report that produces accurate business value in a summary format. The report is 9-10 pages.  To view a sample summary valuation - Click Here

2. Formal Business Valuation.  A full scope business valuation that includes more details and additional analysis and reviews. This report is 34-50 pages.  To view a sample formal valuation - Click Here

3. Comprehensive Business Valuation A comprehensive business valuation that incorporates broad and complex business reviews, financial reviews and analysis. This report is 80-100 pages.

Since we specialize in Mergers & Acquisitions and Business Valuations we are able to offer prices at 50-75% less than that of accounting firms.

Our Value Added Services Outperform The Function Of Business Brokers