So my first post involves a local coffee shop that has been posted for sale.I have come across a business for sale and was wondering on how or if there is any way to value the business other than what the owners "accountant" has valued it at.
There is current value and future value. In order to capture the maximum value you should have a study of the company done, its industry and the markets it operates in. Both internal and external factors that influence value of the company. Internal factors include, among other things, the company’s financial position, results of operations and the size and marketability of the interest being valued. External factors include, the status of the industry and the position of the company relative to the industry. To enable a formal valuation opinion, you should have an expert analyze financial statements, financial information and other data obtained from management. Have them visit the company, interview management, research the company’s industry, customers and competitors, search for guideline companies and perform other procedures necessary and appropriate to render an opinion regarding the value of the company in accordance with the appropriate standard of value. Look into your local phone book for a business advisor or business broker. You are looking at a few thousand dollars, well spent.