business valuation

What is a business valuation, anyway?

It’s the process where the economic value of your business is calculated by industry
professionals based on a variety of factors (i.e., risk, future revenues, etc.) combined with
what someone will actually pay for it according to the existing market.
Miscalculating the value of a business can be a costly error with dire results. Our expert brokers utilize proven methods for accurately valuing businesses to ensure their true values are reflected. Part of this comprehensive process is to ensure we conduct due diligence and consider a variety of variables that include market trends, intangible assets, EBITDA, business type and size, liabilities, liquidity, and several others.

Transparency is key, and it’s critical that all bases are covered when conducting a business
valuation. While sellers often have the best of intentions, we want to ensure that their
expectations are not too unrealistic when it comes to the value of their business. UA’s business
brokers have been doing this type of work for a long time and understand how to calculate the
actual value of a business. Inflating the value will hurt all parties in the long-term, and that’s
now how we do business. We maintain our integrity as reliable experts in this field and remain
objective as we assist business owners in getting the data they need regarding the value of
their business.

What if my business is not valued correctly?

Several things can happen if your business valuation is not done properly.
This includes:
  • Frustrating Buyers

    As part of a buyer’s due diligence process, they will find out what your business is really worth based on their own research and the information you provided. If the calculations are not matching up, this can frustrate the Buyer and cause them to back out of any potential deal.

  • Slowing Down the Process

    If the Buyer happens to still be interested in the deal, even though the calculations are off and they are willing to work with you to make the proper adjustments, this can bring the process to a screeching halt. That’s not something you will want to happen as you want the process to go as smoothly as possible during this transaction.

  • Rejected Financing

    Depending on how the Buyer plans to fund this transaction, a poor valuation could result in them getting denied for funding, and you not getting that sale.

  • Repelling Other Buyers

    By not listing your business at its appropriate value, you could easily scare off experienced Buyers. They can often easily identify when a business is grossly overpriced.

Unity Acquisitions, LLC is your source for getting the proper business value estimate to help you avoid all of these conflicts. Our team members are experienced on both the buying and selling sides and can provide you with the professional guidance you need. If you are seeking to attain your business valuation through us, feel free to contact us to set up a consult with one of our team members or click here to start your business valuation process.

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