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Developing a Supportable Price - Valuation
Where does a price come from ?
Business people, brokers, and other professionals
use many "rules of thumb" to come up with valuations for businesses. As business owners we usually have some figure that bounces around in our heads. That figure based on whatever, can be right
on, high, or low. At any rate the value of a business is about the numbers, trends, likely future trends, strategies, possibilities, it's about the futire, not the past. Simple rules of thumb
just …do not work to support a price.., even if the price is about right. A buyer and his banks need the factors that support the price. When the right buyer comes along you can lose him
without the figures behind the price, and he can lose his bank without the whole story behind the price. When a buyer is gone, he's most likely gone for good. We are not brokers or agents
who make our money on a completed sale, we are not brokers or agents who know a …sale is easier with a lower price...
"Numbers for the past few years may be a big influence on the price,
But other factors, tell if you
should buy, or not."
We have several options to fit your needs.
Level One Value Review (estimated price range)
This service is designed to give a proprietor a quick and cost effective starting point
for his or her future plans.
This Level One Value Review is a value review
designed to give an owner a quick value estimate based on a limited review of the factors most critical in determining the value of a center. The factors considered are market area, population,
financials, facilities, strategies, trends, and other relevant items.
To generate the Review RC Consulting partners will require at least one year of P&L statements, or tax returns, a
questionnaire, and a telephone consultation. The cost for this review is $125.
This review will indicate a price range that may be very accurate even though it is based on a limited
review. Although it is important to remember the information supporting the opinion is limited in scope and may not consider every factor affecting the value of a particular center and the estimate
range may reflect those exclusions.
Level 2 Value Report (Price with base support)
This is a value range report based on breakout financials, demographics, strategies, trends, physical plant and other
information. This option does not involve an RC visit to the facility.
Level 3 Value Report
(price range with financial breakouts and support views)
This is a more comprehensive report developed from
breakout financials, physical plant (current, future and possibilities) review, local demographics, and other information supplied by the proprietor. This report includes the break out financial views
that support the price, and also support financing options available to a buyer. This will cover many items reviewed during due diligence and final parts of the sale process.
This option does not involve an RC visit to the facility.
Level 4 Value Report (price, financial breakouts, support views, facility audit, & projections)
This is a hard copy report developed from breakout financials, physical
plant (current, future and possibilities) review, local demographics, and other information supplied by the proprietor. This option involves an RC partner visit to the facility. This report
includes the break out financial views that support the price and support financing options available to a buyer. This package can give a potential buyer and you, a big start on the due diligence
aspect of the sale.
These value reports focus on the supportable value of a business and to a lesser extent on other use
and salvage value of the equipment and real estate.
RC Consulting Partners can also furnish more standard appraisals if you need. |
