About This Blog
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Peter Siegel, MBA is a nationally known consultant and author - with over 25 years experience on the topic of selling, buying, and niche financing (the purchase of), small to mid-sized businesses. His clients include: business buyers, business owners/sellers, small business advisors, and business brokers. |
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This Blog contains observations, tips, news, events, and case studies relating to selling or buying a small business. |
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This Blog is ideal for business buyers, business owners, advisors, business brokers & agents. |
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Disclaimer
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Opinions expressed on this site do not necessarily represent those of BizBen. |
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Opinions expressed here do not constitute legal advice. Those interested in specific guidance for legal matters should seek competent professional advice. |
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Business Valuations And Appraisals
The following posts are in the business valuations and appraisals category.
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Posted on November 4, 2009 Contributed by Chuck Post
Coin Laundry Evaluation: How To Value Coin Laundries
The laundry business model and the full justification of value of the business are based on its anticipated longevity. A laundry is more comparable to a commercial property with a ground lease and other businesses with extensive improvements than like most other business types. In this blog/article industry specialist Chuck Post covers the topic of coin laundry valuations.
Posted at 6:18am | 4 Comments
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Posted on October 26, 2009 Contributed by Bob Klein
Valuing A Small Business: Searching for Market Value
There are a number of standard appraisal methods used to value a business that include, Asset approach, Income approach, Market approach (Comps), Capitalization of Earnings and Discounted Future Earnings. Each one of these methods individually does not always represent the true value of a business. In this article, Bob Klein, a Southern California business valuation professional shares his view on searching for market value.
Posted at 6:50am | 6 Comments
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Posted on September 22, 2009 Contributed by Willard Michlin
Audits, Business Analysis, Evaluations, & Profitability Analysis
Everyone knows that when you buy a business you need to have an audit of the books to see where the seller may be hiding some facts. What is less understood is that a business analysis is even more important and should be done before spending lots of money on an audit. Willard Michlin discusses these issues in this blog/article.
Posted at 9:06am | 2 Comments
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Posted on September 21, 2009 Contributed by Willard Michlin
Business Appraisers, CPA's, Due Diligence Experts
The buyer of a small California business needs three experts on his or her team when conducting due diligence. What are their functions and how do they carry out their work in the case where a seller's statements about the company's earnings cannot be proven? Here are some insights that will be useful for someone engaged in, or planning to conduct due diligence.
Posted at 6:05am | 5 Comments
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Posted on September 17, 2009 Contributed by Al Statz CBI, MBA
Size Matters In Valuing A Business
I hear lots of interesting observations and questions about the value of businesses. Recently a business owner said to me, “Peet’s Coffee, (Nasdaq: PEET) trades for 20 times earnings, so should I be able to sell my Mike’s Coffee Emporium for that?” It’s a great question. Besides brand recognition and the liquidity of public vs. private company shares, size is the obvious difference between Peet’s and Mike’s. So how much does the size of a company and its earnings affect valuation multiples? Quite a lot as it turns out. Al Statz, business broker in the North Bay covers this issue.
Posted at 8:03am | 3 Comments
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Posted on August 12, 2009 Contributed by D. Joe Atchison, CBI, CBB, CPA, MBA
Selling & Valuing Your Business – 101
Selling your business is not like selling residential or commercial real estate. Business broker D. Joe Atchison, Business Broker, CBI, CBB, CPA, MBA covers with our readers the differences in selling a small business vs. real estate, and valuations of small businesses.
Posted at 8:40am | 6 Comments
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Posted on July 31, 2009 Contributed by Bob Hughes
What Is The Goodwill Of Your Business?
Goodwill is what a business owner has built into his business over the years that include: Reputation, Telephone number, Logos or trademarks, Customer lists, Vender list, Branding, Lease value, Web page, Marketing materials, or any other intangible item that goes into the sale of the business. Bob Hughes, a long time business broker in the Coachella Valley gives his definition of goodwill and what is included in this blog post/article.
Posted at 8:27am | 6 Comments
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Posted on July 14, 2009 Contributed by Ron Hottes
Cash Flow/SDE: Determining The Worth Of A Business
The value of the small business is mostly determined by the cash flow (or business brokers use the term "Seller's Discretionary Earnings" instead to be more accurate). Seller's Discretionary Earnings (SDE) is defined as net income before taxes (operating income); interest; depreciation and amortization; owners compensation; owners benefits; and non recurring expenses. James Jun, MBA - Vice President with Business Team in Southern California (Ron Hotte's office) explains how he calculates the value of a business.
Posted at 9:01am | 6 Comments
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Posted on July 7, 2009 Contributed by Willard Michlin
Adjusted Net Income Defined By Due Diligence Service
Adjusted net income is sometimes a difficult concept to grasp when buying or selling a business. Willard Michlin who provides a due-diligence service for business buyers in the Ventura and Los Angeles County area gives us his definition. Willard Michlin defines adjusted net income in this blog post/article.
Posted at 6:32am | 5 Comments
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Posted on April 9, 2009 Contributed by Peter Siegel
Interpreting Reported Earnings From Sellers
New business brokers--perhaps those who've been selling homes in the past and are switching over--may be baffled about how to advertise seller's earnings if they've listed a business opportunity. Here are some guidelines for understanding the seller's earnings statements.
Posted at 6:39pm | 0 Comments
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Posted on August 31, 2008
Adjusted Net Income - Adding Back In One Time Expenses
When selling a small business adjusted net income is very important when determining the valuation of the business. One time expenses like capital improvements can be added back to the bottom line for adjusted net income purposes.
Posted at 10:25am | 1 Comment
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Posted on October 24, 2007
Car Wash Selling Tip: Determine The Value of Your Business
Todays Car Wash Selling Tip: Free Resources To Help You Determine The Value of Your Business - Business brokers or appraisers sometimes conduct free seminars to help people value their small business. BizBen viewers rated a RV rental service opportunity, a market /beer wine listing, and a tax preparation business as some of the more popular California business opportunities that were listed yesterday on BizBen.com.
Posted at 9:17pm | 0 Comments
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Posted on February 12, 2007
Valuation of a Business - Roseville Workshop
Getting ready to sell your business? Then a business valuation is vital. This hour and half seminar in Roseville, California will cover various aspects of selling a business and how professional valuations are done to maximize your return. Sponsored by Elite Mergers & Acquisitions.
Posted at 10:19am | 0 Comments
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Posted on January 19, 2007
Differences Between Real Estate Agents & Business Brokers
A new article on BizBen discusses the training and background a real estate agent needs to start selling small businesses as a business broker. Resources and training citations are at the end of the article.
Posted at 8:29am | 0 Comments
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Posted on December 20, 2006
Business Valuation Workshop in Irvine
Business valuation workshop helps business owners sell their small business for more. Learn how to enhance the value of your business before you sell. Know the value of your businesses property rights, patents, trademarks, copyrights, and trade secrets.
Posted at 7:38pm | 0 Comments
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Posted on September 14, 2006
A 45 Page Business Valuation Report Doesn't Mean It's Right!
Small business owners need to be aware that there are "business valuation" firms out there that travel the country charging owners of small businesses ridiculous fee amounts to generate impressive looking valuation reports that supposedly help the owners sell their business to business buyers who need proof that the business is worth what the owner is asking.
Posted at 6:47am | 1 Comment
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