No Obligation Meeting

As a business owner seeking to determine the value of your business, you are faced with a daunting array of formulas and theories. At Entrust, our role is to help you identify an appropriate valuation range. We do so as a service to you, without charge, as part of our overall evaluation of your business.

Business valuation can be a complex and difficult subject--though not necessarily as complex and difficult as some might suggest. We'll guide you through this process and, as with all other aspects of our services, will make sure you fully understand what we've concluded, why we've reached that conclusion, and how we propose to act on that conclusion.

Initially, we will make adjustments to your standard profit and loss numbers in order to more accurately reflect the actual cash flow benefits to a new owner. Utilizing appropriate valuation formulas can help to determine the value of your business; however, relying solely on mathematical valuation formulas is a mistake. We believe that business valuation is far more an art than it is a science.

In truth, it is easier to plug numbers into formulas, come up with the results, and announce without further thought that we now know the value of your business. We completely agree with the thought that "statistics are no substitute for judgment" and, as a result, Entrust does not use a paint-by-numbers approach to business valuation. Instead, we bring to bear a broad evaluation of numerous factors that affect valuation.

At Entrust, we understand that your business is unique.

For example, the strengths and weaknesses of your business are different from any other. Your goals, your market share, and the potential buyers who will be interested in your business are different from any other, even in the same industry. Your growth rate is not the same as that of any other business. Your industry has different prospects and risks than any other industry. And, of course, the economy is different today than it was last month, or than it will be next month and, hence, where your business is on the economic curve constantly changes.

We wouldn't suggest that this list of variables even begins to cover all the potentially important factors that go into the value of your business. But, even with that short list, we are talking about many factors that contribute to making your business different than any other. There are simply too many variables to simply squeeze some numbers into a mathematical valuation formula.

We have valued businesses according to mathematical formulas but concluded that for various reasons, the mathematical formulas failed to reflect true value. In one recent case, we priced a business at 75% above the formula results and had an offer within a week.

Your opinion is important. We actively seek your input as part of the valuation approach to your business.

Many business brokers take the position that you may be too attached, too biased, about your business to provide any useful input.

We respectfully disagree.

We know a lot about the marketplace and what buyers will be attracted to; as such, we are able to highlight and identify the value of your business. But, at the same time, we recognize that the insights you have into your own business complement the knowledge that we bring.

So, we will always solicit your thoughts, as well. You know your business and your industry; you know current trends, and you probably have a good sense of what buyers are looking for. If you believe we have missed something in our valuation, we want to know that and discuss it with you. Your insight is important, and we value it. We're not afraid to let you know if we think you're letting your personal biases get in the way, but we want to hear your input as part of our valuation process.

When we value your business, we're providing our opinion on the market value of your business in the context of a potential sale. We offer this service to you at no charge because our approach is to help you evaluate all of your options when it comes to selling your business.

Certified appraisals aren't necessary and don't always reflect the true value of a business. However, there are instances where paying for a certified appraisal is appropriate. For example, if you need a valuation for a legal proceeding, such as valuing a business for a divorce proceeding or a probate or tax case, you'll probably want a formal certified appraisal. Courts like to have the scholarly, theoretical backing of certified appraisals other than the practical market valuation even though the practical market valuation may be more relevant to actually selling your business.

Similarly, if you are considering selling your business to an Employee Stock Ownership Plan (ESOP), or for that matter to any employee, you may want to consider a certified appraisal to establish legal "fairness."

When appropriate, we can provide formal certified appraisals through companies with whom we have a professional relationship.

In many cases, you can take some fairly simple steps that will increase the value of your business. As part of our services, we'll discuss approaches that might be helpful in connection with your business, and we'll make appropriate suggestions.