Our detailed pre-qualification report provides a thorough analysis of your business’s financial health and market value, giving you the insights you need to set a defensible asking price that will attract qualified buyers. Here’s what’s included:
Valuation Methods:
Asset Approach: We assess the value of your business based on its tangible and intangible assets.
Income Approach: We analyze your earnings and cash flow to determine your business’s earning power.
Capitalization of Cash Flow Method: We use this method to estimate the value of your business based on its future cash flow potential.
Multi-Stage Growth Method: We account for different growth phases in your business’s lifecycle.
Market Approach: We compare your business to similar businesses that have recently sold to determine its market value.
List of Comparable Transactions: We provide a detailed list of comparable sales to support our valuation.
Financial Analysis:
Adjusted Financials: We adjust your financial statements to provide a clear and accurate picture of your business’s financial performance.
Sales, SDE, & EBITDA Multiples: We use industry-standard multiples to assess your business’s value relative to its sales, seller’s discretionary earnings (SDE), and earnings before interest, taxes, depreciation, and amortization (EBITDA).
Owner’s Compensation Analysis: We analyze your compensation to ensure it’s in line with industry standards and doesn’t distort your business’s profitability.
Loan Eligibility:
PreQualified Loan Eligibility Range: We provide a realistic range of loan amounts that you may be eligible for based on your business’s financial performance.
Loan Payment Affordability: We help you determine what loan payments your business can comfortably afford.
SIC/NAICS Code Validation: We verify your business’s industry classification code to ensure accurate benchmarking and loan eligibility assessment.
State Tax Verification: We verify your state tax information to ensure accuracy and compliance.
Benefits:
Attract Qualified Buyers: Show buyers that your business is financially sound and ready for a smooth transition.
Secure Financing: Increase your chances of getting pre-approved for a loan and make it easier for buyers to finance the purchase.
Maximize Your Sale Price: Set a realistic and justifiable asking price based on a thorough and independent valuation.
Streamline the Selling Process: Provide potential buyers with the information they need to make informed decisions and expedite due diligence.