Evaluation

Are you considering selling or buying a business? If so, it is critical to know just how much it is worth on today’s market. The process of coming up with this amount is called “Evaluation for Fair Market Value”.

Placing a fair market value on a business is essential for business owners, buyers, and sellers. Innovative ways of structuring organizations can complicate the simple question: “How much is it worth?”. Pam Ryan and her Commercial Ventures team can determine the current worth of any business.

A properly done evaluation can provide valuable information for decision making on:

  • The purchase and sale of businesses for assets or shares
  • Partnership buyout
  • Transactions among related parties
  • Divorce
  • Estate planning.
  • Exit strategies
  • Being prepared to sell due to an who owner wants to sell or is forced to sell due to circumstances such as health, divorce or partnership split.

Request for Evaluation

In order to evaluate your business, we will need as much of the following information as possible. All information you provide will be treated in strict confidentiality.

Contact us at (403) 278-7839 to arrange a meeting.

Three to Five years of Profit and Loss Statements, including monthly gross sales for the recent two years so that we can see your high and low months and where the business has increased or decreased in sales as well as seasonal periods.

  • A copy of the lease for your premise and/or other leases.
  • Are you the sole shareholder? If not, who are the other shareholders?
  • Is there only one corporation, or are there other corporations or holding companies involved?  If so, what are their names and dates of incorporation?
  • What are your days and hours of operation?
  • How many hours a week do the owner/shareholders work on average?
  • How many weeks or months are the owners/shareholders away from the business not working each year?
  • What are the owners/shareholder’s primary roles in the business and what do these roles entail?
  • Has there been any monthly increase or decrease in expenses for salaries, rent, etc. since your last year end?
  • What do the shareholders personally take out each year in wages and fringe benefits?
  • A list of assets to be included in the sale and their approximate market value, including copies of any appraisals on equipment.
  • A list of employees or sub-contractors and how long they have worked for the company, plus their roles, hours, wages, commissions or bonuses.
  • How long will the owners/shareholders stay to train a new owner in the business if the business is sold?
  • Do you want the price based on assets or shares?
  • Do any of the equipment items or leaseholds need to be up-graded or replaced within the next year?
  • Are any special licenses, trademarks, patents or trade names to be included in the sale?
  • Are any websites, social media or intellectual property to be included in the sale?
  • What are your approximate number of regular customers?
  • Approximate Inventory at cost?

Commercial Ventures helps sellers make the most of opportunities!

Call (403) 278-7839 now for more information … your business is worth it.