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Business Valuation Specialists LLC

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How Does Storage Facility Business Appraisal Work?

Posted by Business Valuation Specialists LLC on Oct 14, 2019 8:00:00 AM

Storage Facility Business Appraisal

When your business is storage, every day brings a new challenge. Someone lost their key, didn't pay their bill or is worried about their ex getting into their storage unit. But beyond these daily matters, have you ever given serious thought to the value of your storage company and how that value is calculated? You might be surprised at some of the many steps and aspects that take place when a professional storage facility business appraisal takes place. Here's a quick look inside the process to help you get started.

 

How Does Storage Facility Business Appraisal Work?

The first thing that most business valuation specialists will do when you request an appraisal of your storage company is to determine a number of factors that will help them to calculate the value of your company. They will start by looking at your company's overall finances, making adjustments if necessary for large transactions that may skew the end results. They'll take a look at your competitors in the area and market, looking at what they're doing well and what they're doing poorly. They'll take an overall view of your business to determine how different factors will influence that value.

They'll also consider a number of other outside factors. What condition are your industry and market in? Are there a lot of companies trying to get out of the business before they lose their investment? Are there entrepreneurs trying to buy in before the price goes up? That may not be the time to sell. Is it just a regional issue? If so, excess materials or equipment can be listed online and sold to businesses outside of your regional slump. Is the storage facility down the road getting more business because it's closer to the interstate or less because it's in a high-crime area. All of these factors must be carefully considered before your business' overall value can be calculated accurately.

After this, there may be some additional fact-gathering. Are your doors 20 gauge or heavier 26 gauge metal to prevent theft? What level of capacity do you typically see rented out to your customers and which portion remains empty, costing you potential income? Are you charging high enough rents to keep the place secure but not so high that you're driving customers away? Do you have a solid reputation in the community and do you volunteer time, resources or materials to local organizations? All of these aspects can impact the overall value of your storage business beyond the simple value of the land, buildings and security structures.

If you're wondering where you can use a business valuation, the simple fact is that they are very useful documents with a range of possible applications. They can be used in court, with your insurance company, to settle a question of appraisal for a tax bill or help you secure financing for your business' next big expansion.

Storage facility business appraisal can be much more challenging and involved than you may have initially guessed. However, when you're working with an independent, third-party business valuation specialist who has experience in your industry, you can get a lot more than you may have expected from the process. Make sure that the valuation specialist you work with is certified to ensure that they are qualified to offer you a solid calculation of your storage company's business.

Tags: Storage Facility Valuation

Why is Child Care Business Valuation Important to Your Facility?

Posted by Business Valuation Specialists LLC on Sep 30, 2019 8:00:00 AM

Child Care Business Valuation

When you run a preschool or daycare, business valuation may be the furthest thing from your mind. Why does it matter when your days are full of sticky fingers, happy faces and crayon drawings? To protect the future of that business and those children, a child care business valuation can provide a wide range of insights and information that can impact your business. Here's a quick look at some of the many reasons why having a business valuation performed on your daycare, preschool or other child care facility is vitally important to keep it in successful operation.

 

Why is Child Care Business Valuation Important to Your Facility?

Consider your child care business. Whether you have a few dozen or a few hundred children at your facility, you have a vested interest in making sure that they are taken care of, for their families and for their future. You run background checks on new employees. You have safeguards in place to prevent abductions, abuse or other tragedies. But are you protecting your business as carefully as you're protecting the children that are under your care?

Your business provides a valuable service to the community and the families you serve. What would happen to those families if your business failed? What would happen to the children that you care for? As the families scramble for a new place for their kids to stay while they're at work or school, they may not have the ability to choose a child care facility that is as careful, considerate or responsible as yours is. What care will those children receive in those facilities? How will the care that they receive - or not receive - impact their families and their futures? As you can see, protecting your business is important to not only you and your employees, but those families and children as well.

When you have a business valuation performed on your child care facility, you can get the information you need to protect your business. You'll gain a number of insights into where your company is strong and where it's weak. This allows you to continue to keep up the strong areas of your business while building up the weak areas. It provides you with solid values on your child care facility's worth, so that you can carry sufficient insurance in case of a fire, disaster or other situation that shuts you down for any period of time. Having sufficient insurance and a solid valuation report means that you can quickly make a claim and get back into business again.

Though it can be difficult to see the reason for a child care business valuation initially, the insights that are provided by it will help you grow your business, allowing you to help more families and children as they explore their world and learn about it. However, not all business appraisals are the same. Working with a certified business valuation specialist means that you'll receive a calculated value that is independent of any outside interests, which will hold up well in a wide range of circumstances, including financial, legal, insurance and tax circles. When hiring a business appraiser, make sure to take the time to determine whether they are certified or not, to ensure that your investment is a solid one.

Tags: Child Care Business Valuation

How ESOP Plan Business Appraisal Provides Real Employee Ownership

Posted by Business Valuation Specialists LLC on Sep 16, 2019 8:00:00 AM

ESOP Appraisal

When you're considering an employee stock ownership plan for your business, how do your employees know whether the value they perceive from their shares is realistic or not? Business values fluctuate with a wide range of factors, from industry changes to market conditions and consumer interest to supplier price changes. How do you ensure that your employees feel true ownership in your business? One option to consider is having an ESOP Plan Business Appraisal performed by an independent third party. Here's how this type of appraisal helps to build trust by your employees in the ownership you're creating for them.

 

How ESOP Plan Business Appraisal Provides Real Employee Ownership

If you've created an employee stock ownership program for your company, you may have realized that there's a difference between simply creating the program and creating a sense of real ownership in your employees. Many companies simply stop at offering stock to their employees, but fail to create solid ownership. In some businesses, lack of trust in management can cause employees to hold back from taking true ownership in the company. But to really create solid growth and improve employee franchisement in the company, having a transparent process is vital.

One of the best ways to create that transparency is by not relying on your company's own internal reviews, audits and accounting, but by providing a business valuation of your company from an independent third-party appraiser. This process allows employees to see exactly where your company stands. A valuation report provides detailed information on your company, including its strengths and weaknesses. Your employees can see whether the market issues that you've mentioned in the past are really a concern, or if they are simply an excuse to keep from moving in a particular direction. It provides them with validation of the information that you're providing to them, from an independent party that has no vested interest in whether the report favors your management team or the employees at large.

But what if your employees have strong confidence in your company's management team? Even in these situations, having a business valuation performed and distributing the results for employee review can still reap great benefits. The strengths and weaknesses that will show up in your report help to show the employees where improvements need to be made. This insight allows your employees to carefully consider areas for improvement and new ideas that they can recommend, giving them the opportunity to take true ownership in your business. It allows you to harness the full potential of every employee at your company for the company's improvement and growth, rather than simply hoping that someone speaks up if they have an idea, because they have a vested interest in seeing their company succeed.

An ESOP plan business appraisal is a great way to improve employee interest and sense of ownership in your company, because it's calculated by an independent, third-party appraiser. This gives you a great place to build your business further in the future, through the feedback that you and your fellow employee-owners receive in the appraisal report. However, for this reason, it's vital that you use a certified business valuation specialist during the process so that the results you receive have been properly calculated using standardized methodologies.

Tags: ESOP Appraisal

How Does Marine Transport Valuation of Businesses Work?

Posted by Business Valuation Specialists LLC on Sep 2, 2019 8:00:00 AM

Marine Transportation Business Appraisal

When your business is moving goods or people over the water from point A to point B, you may know the value of those goods and the services you provide, but do you know the value of your water transportation business? Though it can be difficult to understand the processes behind it, marine transport valuation is a great option to help you get an estimate on your company's value. Here's a look at how to process works.

 

How Does Marine Transport Valuation of Businesses Work?

A marine transport company may move a variety of things to various points, whether it's a barge moving sand to a concrete company on a river, a ferry moving people, goods and vehicles across a channel or a cruise ship moving thousands of people from port to port across international waters. Because of this wide range of services, the value of marine transport companies can vary greatly. A simple, one-boat ferry company that moves vehicles and people to a neighboring island will certainly have a different value than a cruise business that has dozens of ships, each carrying thousands of passengers through a range of ports around the world every day.

But exactly how does the valuation of these businesses work? For a simple barge service, the business valuation specialist may look at the value of the company's services, the expected remaining useful lifespan of its barges and other assets and project those figures into the future to determine the company's future income, providing them with solid figures to calculate value. It's the company's utility and the rate of replacement of its marine assets that help determine its value on the open market, provided that it doesn't end up with a terrible reputation that causes it to lose business.

For businesses that interact with the general public, such as a sail and snorkel tour operation off the Florida coast, the company's reputation and public reviews may need to be taken into account. Why? Some companies are able to build a significant portion of their income off of intangible assets, such as public goodwill or its reputation on online review sites to continue earning income well into the future. If the company recieves a large number of average or poor reviews, fewer people will want to use its services, which leads to a direct reduction in its income and the company's overall value on the open market.

A business valuation specialist will take a solid look at the company's finances, assets, reputation and the current state of the market in which it operates to determine the business' value. If our sail and snorkel operation, for example, is operating in times when market conditions are causing a decrease in tourism that is expected to continue far into the future, those condition will have a direct impact on the company's future income and its value on the open market.

By using marine transport valuation to determine the value of your company, you can ensure that you have a solid grasp of its estimated value for a wide range of uses. But don't settle for a general estimate that could be inaccurate or be influenced by the interests of the other party. Using an experienced accredited business valuation specialist provides you with peace of mind that the estimated value was calculated by an independent third party.

Tags: Marine Transportation Business Appraisal

Tough Roads Ahead: How a Fleet Trucking Appraisal Helps

Posted by Business Valuation Specialists LLC on Aug 19, 2019 8:00:00 AM

Fleet Truck Business Appraisal

The trucking industry today is facing some serious challenges. Between hard-to-find labor, increased fuel costs and new government regulations, keeping your business running is more difficult than ever. Fortunately, a fleet trucking appraisal can help you make your company's operation more agile and flexible than ever before. Here's how you can leverage a fleet appraisal for your company's benefit.

 

Tough Roads Ahead: How a Fleet Trucking Appraisal Helps

When you run a logistics company, you have a very different set of concerns for your business than other companies may have. You have a significant amount of capital tied up in trucks, trailers and similar equipment. A lot of money goes into paying drivers well to get your freight moved. Bad dispatching decisions waste fuel, time and resources. Changes in government regulations make it difficult to keep up with the latest requirements for your industry. Many of these changes require additional investment in your drivers, your equipment and your business to make sure everything stays above board. This can require securing financial investors or a bank loan to make the needed changes.

However, the value of your business may not actually match up to the value that is in your accounting books. Depreciation tables may have certain assets, such as a long-running semi, fully depreciated while it's still in operation, building value for your company. Real estate assets may have appreciated in value since the time that you purchased them. If there is stronger demand for shipping services, your company's overall value may have increased higher than you may have expected. How do you account for these factors?

You could try to determine the value of all of the separate parts of your business, but that may still come up with an inaccurate figure. Why? The strength of the management team, the goodwill of the community or your company's reputation in the industry are all assets, but ones that are difficult to put a specific value on unless you've had a lot of training in how to calculate those values. These intangible assets can often add up to a significant portion of your company's overall value.

The easiest way to calculate your company's value is to leave it in the hands of a professional business valuation specialist. These specialists have been trained in calculating both the tangible portions of your business - physical assets such as semis, real estate and equipment - as well as the intangible assets, such as brand value, goodwill and reputation. Accredited business valuation specialists use tested methodologies and calculations to determine the overall value of your business, calculations and methodologies that have been tested over the years in a wide range of real-world situations, such as courts, insurance claims, bank loans and tax appeals.

By having a fleet trucking appraisal performed on your business, you can determine what your company is worth, allowing you to then use that estimated value to grow your business, invest in new technology or retain exceptional drivers as trainers. The best way to determine this value is by having it calculated by an accredited business valuation specialist. This ensures that the appraiser is using standardized methodologies that will hold up well to strong scrutiny, whether you need that information for financial, legal, tax or insurance purposes.

Tags: Fleet Trucking Business Appraisal

What Happens to the Business After You're Gone? Estate Settlement Valuation

Posted by Business Valuation Specialists LLC on Aug 5, 2019 8:00:00 AM

estate settlement

When a business partner or owner dies unexpectedly, it's important to decide what needs to happen next relatively quickly. A number of different tasks must be undertaken to stabilize the business as quickly as possible while determining its future course. But if the business is part of an estate that is being split among multiple heirs, determining that direction can be difficult if not impossible. Fortunately, estate settlement valuation can make the process go more easily.

 

What Happens to the Business After You're Gone? Estate Settlement Valuation

Let's take a look at an example of what can happen during estate settlement. After a business owner dies, his business is to be split between three children. One has spent several years in the business and has a vested interest in keeping it in operation. The second is close to the family but is more interested in receiving their legacy from the business within the next couple of years and wants to sell to the right buyer. The third has been caught up in caregiving for the business owner, is exhausted and simply wants the company sold as quickly as possible, so he can get on with his life.

With these different approaches, the value of the business will vary greatly. The first child will be interested in what the future value of the business will be, which is determined by calculating the income value of the business. The second child wants to wait for the right buyer and expects to receive fair market value for the business. The third child simply wants to be done with the process and will settle for the liquidation value of the business.

The first child could offer to buy their siblings' portion of the business, but that may require capital that the business does not currently have available. A loan could be pursued, but at what value? Future income? Fair market? Liquidation? This is where a business valuation specialist can provide valuable information and insight to help make the process move more smoothly. Having a valuation performed as part of the estate settlement provides a number of benefits to the family:

  • It tells the current value of the business, which may be otherwise unknown, providing valuable financial information to help with the decision-making process.
  • It can provide multiple scenarios, allowing the family to decide whether they should sell now or whether it makes sense to wait for the right buyer to receive a higher offer.
  • It provides proof of value for a financial institution or court of law, making it easier to secure a loan or document value for a court case.

By using estate settlement valuation as a tool to determine business value, you can more easily determine the direction the business should take in the future. However, if you need this type of valuation performed, that doesn't mean you can simply talk to a realtor or other individual who doesn't understand the nuances of business valuation and expect to get a solid calculation that will bear out in reality. For situations like this where legal proceedings may come into play, it's vital to only work with a certified business valuation specialist to ensure that the figures you receive are accurate and will hold up to strong scrutiny.

Tags: Estate Settlement

How is the Convenience Store Appraisal Process Different from Other Industries?

Posted by Business Valuation Specialists LLC on Jul 22, 2019 8:00:00 AM

convenience store valuation

When you own a c-store, have you considered what it's actually worth? If you have an accurate idea of what your business is worth, you can then leverage that value to help build your benefit, whether it's to expand your operation, make needed improvements or add a new location for your company. But exactly how do you determine that value? Read on to learn how convenience store appraisal is completed and how it's different from the appraisal of businesses in other industries.

How is the Convenience Store Appraisal Process Different from Other Industries?

Convenience stores have a number of differences when compared to businesses in other industries. They tend to have a lot of money tied up in stock, require frequent restocking of that stock and deal in numerous small transactions. Location is vital to a convenience store's success or failure, with a good location that has few competitors providing a great income and a poor location with many competitors can end up costing money after the expenses are taken into account.

Because of these reasons, income is often used as an indicator of value in convenience stores. Whether you're considering selling your business or simply getting a loan to improve operations or machinery, knowing the value of your machinery gives you the power to leverage that value into a wide range of options. If you don't know the value of your equipment, you miss out on that advantage.

During the appraisal process, the business valuation specialist will start by learning about your business, including its position in the local market, the past income levels and its overall operation process. This allows the valuation specialist to determine the business' strengths and weaknesses, including areas where the owner can capitalize on the strengths and improve on the weaknesses. They're able to project the estimated income out into the future to determine future value, whether the business has strong regular income, seasonal income from tourism or special events or irregular income that has no regular pattern.

This information is all fed into a number of complex calculations that allow the business appraiser to determine the convenience store's overall value. Those calculations are then used in developing a professional report that explains exactly how that value was calculated, the factors that were involved and the reasons behind the valuation, which can often impact the type of calculation that was used. This is important, as some situations require the appraiser to use a specific methodology, such as using fair market value for some types of court cases. But what about once the report has been completed? If there are areas the owner doesn't agree with, there's time for discussion to ensure that no information has been left out of the report.

By understanding how convenience store appraisal works and how it's different from appraisal performed in other industries, you can gain a better appreciation for the process and the value the appraisal delivers for your business. However, these benefits can only be realized when you work with a certified business valuation specialist who understands the nuances in business appraisal. Make sure that you ask the appraiser you're planning on working with whether they've gone through the certification process, which provides strong education and methodologies that have withstood the test of time.

Tags: Convenience Store Valuation

What's involved in CBD business appraisal?

Posted by Business Valuation Specialists LLC on Jul 8, 2019 8:00:00 AM

CBD Business Valuation

The CBD oil business is booming. As states loosen regulations and more health benefits of the oil are realized on what seems like a daily to weekly basis, many serious financial experts are predicting serious growth for this oil, and the businesses that promote it. Forbes recently cited a study that stated that the CBD oil industry could reach $16 billion by 2025. Another study cited in Rolling Stone is more optimistic yet, predicting a $22 billion industry by 2022. MarketWatch is expecting a 39.5% CAGR. These numbers spell huge profits and success for those investing in this bold new industry. But in this rapidly growing market, how is CBD business appraisal different than appraisals for other industries? Here's a quick look at the process.

What's involved in CBD business appraisal?

CBD oil is still a relatively new prospect in the marketplace, but its popularity is growing on a daily basis. With this strong growth, it's important that you know what your business is worth so that you can use that value to grow your company in a way that is reasonable, instead of risking your investment carelessly. Working with a certified business valuation specialist can help you make this process easier.

To start, a well-qualified business valuation specialist will take a solid look at the market. Though it's very easy, as a business owner, to get caught up in the hype and dream big based on the highest projections, a good business valuation specialist will instead look at the average numbers from a wide range of sources, making an accurate calculation of what your company's value is as well as projections of what your company will be worth in the future.

The appraisal will also look at what your competition is like and how that impacts your market share. This includes other retailers in the area if you run a shop, other websites if you sell online or other similar businesses if your focus is in a different aspect of the CBD oil industry. This allows them to understand whether you'll have competition in your existing market share or whether the lack of competition will allow for further growth.

The valuation specialist also looks at your business finances. This allows them to determine if there are areas where your company's accounting practices are strong or weak, allowing you to make corrections as needed to ensure that your company can see maximum growth in the future. This allows you to get your business into great financial shape so that you have better odds of getting a great loan from your financial institution when you want to expand your business in the future.

By having a solid grasp of what's involved in CBD business appraisal, you can gain a much better appreciation of what your company is really worth, especially with all of the wild speculation of where it's going. This will allow you to better leverage your company's assets and potential into this promising growth, making it easier to improve your company's overall position in the market. However, it's important to make sure that you're working with a certified business valuation specialist who knows how to properly calculate the value of your company using tested methodologies to deliver an accurate picture of your company's financial health.

Tags: CBD Business Valuation

What's Involved in the Process of Valuing a Food Services Business?

Posted by Business Valuation Specialists LLC on Jun 24, 2019 8:00:00 AM

food services appraisal

If you're running a food service business, have you ever considered the true value of your company? If you haven't, that's okay - it's pretty common for companies to ignore the value of a business appraisal until it's time to sell or another serious event in the business' lifecycle. However, valuation can provide you with a range of tools to help improve your business. But what's involved in the process of gaining an accurate picture of your company's value? Here's a quick overview to help get you started with a better understanding of the process.

 

What's Involved in the Process of Valuing a Food Services Business?

To start, when you contact a food service valuation specialist, you'll be asked a number of different questions about your company and will provide some information about your company's finances and market position. This information gives the appraiser a good grasp of where your company's position is in the market, its place among your competitors and an overview of its financial state. This allows them to make comparisons across the industry and see where your company falls.

Once that's done, they'll take a solid look at the financial data you've provided. They'll notice things that you may not have noticed, such as that part of your huge profits one year came from a specific contract you'd won or the huge expense from buying new equipment to expand your business, and that it may be impacting future growth or income calculations. A certified business valuation specialist has the knowledge and experience to account for these unusual situations and can make adjustments to your books to balance these unique numbers to provide a better view of your overall business value, both now and in the future.

They'll also take a solid look at all of your assets. For example, it's fairly common to depreciate the value of a piece of equipment to zero on the books, even though that equipment will be producing value for your company and actually has value of its own for many years to come. For example, if you purchased an oven for your bakery business ten years ago and depreciated it on a five-year schedule, it will show a value of zero in your books, even though it's still being used to produce goods and could be sold for some amount to someone who is starting their own business for a few hundred or thousand dollars.

The appraiser will also look at your place in the market and how you compare to other companies. Just because a similar company sold for a particular figure a few years back doesn't mean that's what your company is worth! The appraiser will take a solid look at all the similarities and differences to determine what the difference in value is between them.

By understanding what happens when a food service business is appraised, you can gain a better appreciation for the insights that the process provides for your company. However, the depth of insight you're looking for can only be found when you're working with a certified business valuation specialist. If you're not sure whether the professional you're working with is certified, take a few minutes to ask about their qualifications and experience. If they're not certified, they're not using calculations and methodologies that have a strong, tested background.

Tags: Food Services Business Appraisal

How is Non Profit Business Appraisal Different Than Other Valuation Types?

Posted by Business Valuation Specialists LLC on Jun 10, 2019 8:00:00 AM

Valuing a Non Profit Business

When you run a charitable organization, non profit business appraisal may be the furthest thing from your mind. After all, if you're not in it for profit, why does it matter what your organization is actually worth? As it turns out, quite a lot! The value of your non profit provides you with plenty of options in terms of financing special initiatives, getting your tax paperwork completed correctly and so many more important areas. Here's a look at how non profit organization appraisal is different than other types of valuations and how that impacts your company's bottom line.

 

How is Non Profit Business Appraisal Different Than Other Valuation Types?

Let's start by looking at what a non profit actually is: an organization set up through the IRS that is not focused on making a profit, but has a completely different purpose, such as providing clothing to the poor, helping veterans get back on their feet, putting out fires through a volunteer fire department, spreading their spiritual beliefs or sharing a political message. Any of these organizations do amazing work on a daily basis in making our world a better place.

However, it's important to also consider the financial aspects of your organization. Though you're not focused on making a profit, a certain amount of money must come in to ensure that the lights stay on and outreach can continue. This requires having accurate financial records of your organization's overall value.

This value spreads far beyond simple asset worth, such as the value of your forklift in the loading bay or the printer that is used to spread the word. It includes a wide range of intangible assets as well, such as your reputation in the community and the goodwill that brings about, which in non profit organizations, often translates into donations that help you keep your operation moving.

For these reasons, it's vital that a non profit be valued so that you can leverage these intangible assets. If the bank knows you have a certain amount of money coming in every month and that you're not in debt up to your eyeballs, they're more likely to approve the funding you need to open that new youth center, outreach office or operational loan to keep things moving when money is a little tight. Having a business valuation report available for them to check value against makes this process much easier.

What's more, this information helps you ensure that you're keeping appropriate levels of insurance coverage in place for your organization. Whether it's to take care of lawsuits from that opposing group across town or to take care of costs when your antiquated structure that was donated to the cause burns down, this insurance covers the cost of getting back up and continuing the fight.

Though a non profit business appraisal may be the furthest thing from your mind when you're handing your organization's daily business, it can have a strong impact on your overall operations and your ability to impact positive change in your community and the world at large. Whatever your organization's focus, consider having an appraisal performed by a certified business valuation specialist to ensure that you're able to protect your assets when it matters most, so that you can keep your good work rolling forward.

Tags: Non Profit Business Appraisal