Business valuations are important when you are looking to sell your business. Here are some posts about the how and why of business valuations, and how we as one of the top business brokers in Sacramento, California can help you understand the process and get your business ready to sell.
One of the most common valuation metrics for manufacturing companies is the EBITDA multiple. If you’re a biomedical or medical device manufacturer, then you know the importance of business valuation. Knowing your company’s worth is essential for decision-making and growth planning. In this guide, we will explain how EBITDA multiple works and how it can […]
Is the revenue multiplier a reliable way to find a company’s value? Get both sides of the story in this article. The business world is filled with decisions that can make or break a business’s success. Choosing the suitable business valuation method to determine a company’s value is one such decision. The revenue multiplier has […]
Retirement decisions can be complicated, especially for Californian business owners! But lucky them – they’ve got the beloved EBITDA to help guide their journey. By multiplying this value by a multiple (between 1 and 6 times) based on industry standards or recent market movements, it’s possible to estimate an appropriate sale price beyond profitability measures […]
Using a business multiplier for small businesses (ranges from 1x to 5x seller discretionary earnings or SDE) is a quick way to find your small business valuation and its worth. As a California retiring business owner, you might be asking yourself this question: “what’s my company’s worth”? The business multiplier method calculates the value of […]
Use the average multiplier for business valuation by calculating the average annual earnings of the business and multiplying it by a specific multiplier. This multiplier is typically based on industry averages and can vary depending on factors such as the size, profitability, and growth rate of the business. When it comes to determining the value […]
When it comes to assessing the value of a business, there is often much confusion around what exactly is meant by terms such as ‘business valuation’, ‘business appraisal’, and ‘company’s worth.’ Although they are all concerned with obtaining an estimation of the current market value of a business, each one is a distinct process with […]
One common method of valuing a small business is to use valuation multiples. Valuation multiples for a small business are simply a way of comparing your business to other businesses in your industry that have been sold recently. The following are some common valuation multiples for small businesses: Retail: 0.5 – 1.5 times EBITDA Restaurants: […]
Many different types of valuation formulas can be used to determine the worth of a business. Here are ten of the most common formulas to value a business: 1) Asset-Based Valuation The valuation formula for an asset-based calculation is: Current Value = (Asset Value) / (1 – Debt Ratio) Business owners either overvalue or undervalue […]
If you’re selling your managed security service provider business, it’s important to understand the process to get the maximum price. Here are some key steps to keep in mind when selling your MSP business in California. 1. Know the value of your business. The first step is understanding how much your business is worth. Many […]
As managed cloud service providers in California, you may be looking to value and sell your IT services business. If so, it’s essential to understand the process and how to get started on a successful sale. One of the most important things you can do is understand what your IT business is worth. A valuation […]
If you are asking: “What’s my business worth”, and what is MSP valuation multiples valued at? We have identified four factors to improve your business value before putting it on the market. MSPs are typically valued at a multiple of their annual recurring revenue (ARR). The most common range for MSP valuation multiples is 2-4x, […]
If you’re thinking about selling your HVAC business, you will need to know how much it’s worth. There are a number of factors that go into determining the value of a business, including profitability, level of debt, and intangible assets. A professional business appraiser can give you an accurate valuation of your business, which will […]
An HVAC business broker can provide valuable assistance in valuing your business and marketing it to potential buyers. HVAC business brokers have a wide network of contacts and can provide invaluable guidance throughout the selling process. If you’re thinking of selling your HVAC business, it’s important to get professional help in order to ensure that […]
If you’re looking to sell your plumbing business, it’s important to understand how to value it. The size, location, and growth potential of your business will all play a role in determining its worth. In California, a plumbing business is typically worth more than one in other states due to the state’s booming economy. Additionally, […]
If you’re thinking of selling your plumbing business in California, it’s important to get professional help to ensure that you get the best possible price for your company. Are you a baby boomer business owner looking to sell your construction business in the plumbing niche? If so, you may be wondering how to go about finding […]
A seller’s discretionary earnings (SDE) is a seller’s net income before taxes, interest, depreciation, and amortization plus certain other discretionary expenses like the owner’s salary, benefits, and personal automobile expenses. The seller’s discretionary earnings worksheet provides a detailed breakdown of how SDE is calculated. The seller’s discretionary earnings multiple is used to value a business […]
When it comes time to value a construction company, there are various factors that will come into play. One of the most important aspects of this process is understanding how these construction businesses are valued in California. There are several different valuation methods that can be used, but each one has its own set of […]
How to increase company valuation? We dive into four value drivers that can maximize your business value and get the highest selling price. If you’re thinking of selling your business in the next 6 to 12 months in California, you may be asking – how I can get the highest selling price and maximize business valuation? […]
The quality of earnings analysis will provide qualified business buyers in California with a detailed review of the company they are purchasing, including an in-depth earning report that details how it operates and what its prospects might be. This information can help baby boomers business owners who are looking to sell their business and avoid […]
Adjusted financial statements are crucial If you want to sell your business successfully in California, you must showcase the health and performance of your business on your financial statement. Normalized Financial Statements In normalized financial statements, you eliminate expenses not typically incurred by the company to adjust the income statement for potential buyers. Future buyers […]
Before selling your business in California, make sure you maximize its value with SDE adjustments and adjusted financial statements that will attract buyers and give you a better return on your investment. Adjusted SDE Definition SDE is an acronym that stands for seller’s discretional earnings. It represents a company’s net income before factoring in the […]
As a retiring business owner in California, you have come to a point to value and sell your company, but, this can get tricky because what you think your business is worth may not be what the buyer considers it’s worth. To answer your question, “how do I calculate the value of my business to […]
Are you asking this question: “what is my business worth?” Selling your business can be an intimidating process. There are a lot of factors to take into account, making it a confusing process for many. So, to make things easier, we’ve put together this guide on how to value your business in California. How Much […]
Many factors go into determining how much is a business worth selling. These 5 methods of valuation can assist in finding out how much you can sell your California-based business for. Business Valuation Examples to Determine Business Worth While not an extensive list, these eight business valuation examples or methods can assist in determining how […]
Income approach valuation is a must when you decide to sell your business quickly in California, it is an emotional process. As you navigate the excitement of cashing out on your hard-working investment, there are also a lot of things that go into valuing your company. You can value an enterprise in various ways, but […]
If you are asking, how to value a business quickly? The answer can be complicated. But, you can get started with this calculation: business value = assets – liabilities As you figure out the best way to sell your business in California, there are several strategies to calculate your business value, increase your company’s value, […]
An EBITDA multiple for trucking companies is a tool to calculate the enterprise-level return on investment your business is performing. Placing this calculation against the industry standard for your area of logistics could show you how you’re performing compared to others in your sector and give you some idea of how much you need to […]
Learn more in this guide on how to value a logistics company. If you are a California transportation and trucking company owner looking for the best business valuation method to determine the value of your business, read on to learn the three most common business valuation approaches and what is best for you. How to […]
Based on years of experience and due diligence, Rogerson Business Services recommend the income calculation method for determining how to value a professional firm in California. Valuation of a Professional Service Firm When calculating the valuation of a professional firm, you have to think about a lot of factors. Fortunately, service business valuation multiples can […]
How to value a service firm? In this post, we will be exploring the best method on how to value a service company in California. Knowing the exact value of your firm is crucial and there are several business valuation methods when it comes to determining the value of a company. Value a Service Firm […]
There are three main methods for valuing a wholesale distribution company, but we’ve identified the revenue multiple valuation methods as the most accurate and effective one for wholesale distribution companies. Revenue Multiple Valuation Approach A business valuation determines the current worth of a business through an objective lens. When selling your distribution company, the best […]
If you are selling your distribution business and need to know how to value wholesale distribution business, read on to learn some of the best business valuation techniques. How to Calculate Wholesale Distribution Business Value When you are selling your wholesale distribution business, you have to know the ins and outs of how to value […]
The first step to take when selling your manufacturing business is learning how to calculate business valuation to determine your business’ worth. Below you can find more information on how to calculate business valuation. How to Calculate Business Valuation? Calculating the valuation of your manufacturing business is a complicated process. If you are not a financial expert, you […]
If you want to value a manufacturing business, you must calculate business valuation by valuing the manufacturing business assets. A valuation is an assessment of the net worth of a company. In any business, there are assets, which are properties, equipment, and other revenue-generating entities. Liabilities are costs incurred by doing business. The asset-based approach […]
No California small business owner likes talking about taxes, and they certainly do not like paying them. However, that does not change the fact that taxes are a part of everyday life, especially in the commerce world. Knowing the ins and outs of the tax code can be advantageous for small business owners, but a […]
When you want to sell your California small business, the first of many steps is to calculate business value. You don’t have to be a business appraiser or an accountant to do it, but there are important concepts to understand, so you are comfortable with the process and the outcome. What’s important is to have […]
Planning to sell your small business in 2021? View market insights that help you value and sell your California business in 2021. As we move into the close of 2020, there is no doubt it is tempting to look at this year with enormous regret and frustration. If we own and operate a business in […]
Ed Goldman is the author of THE GOLDMAN STATE and writes a thrice-weekly online column. When he was younger and more foolish, Ed was a daily columnist for the Sacramento Business Journal, as well as a monthly columnist both for Sacramento Magazine and Comstock’s Business Magazine. Ed is also the author of five books including […]
The California economy, like the US economy and the rest of the world, is still reacting to COVID-19 and its effects. Adding to the mix, in California, we are experiencing a very hot and dry summer with over 350 wildfires raging throughout the state. Also adding to the mix is AB5 or the new independent […]
It is hard to be believe but the first official case of COVID-19 or the coronavirus was recognized in the United States on January 21, 2020. As I sit to write this article in late July 2020, that is over 6 months ago. For many business owners in specific industries such as Restaurants, Bars, Fitness […]
In mid-March 2020, it was with great pleasure I was able to assist the owner of a California manufacturing business successfully sell his business. It was physically located in Silicon Valley and three days before the sale closed, the 6 Bay Area counties were closed due to COVID-19 and so we thought the deal might […]
Every business owner has been affected in one way or another by COVID 19. However, the key is what to do about it. From employee, client, and customer safety to financial struggles and concerns, there are things you can do to protect yourself and your business. Here are ten things every California business owner should […]
With the recent COVID 19 global pandemic, it is more important than ever to manage your cash effectively. While we know cash flow is the cornerstone of any business, it is often easy to lose sight of those controls when times are good. But cash management and cash flow are vital to your business success. […]
Owning a California business has always been both desirable and different. Areas of great year-round weather and a laid back lifestyle have appealed to California entrepreneurs for decades. So has the potential for income, as were the state its own country, it would be the sixth-largest economy in the world. It was also one of […]
One of the lyrics from John Lennon of The Beatles’ fame says, “Life is what happens to you when making other plans.” From March 16, 2020 in California, the Great Lockdown recession saw the closing of 6 Bay Area counties and the directives from California Governor Newsom to execute the closing of non-essential businesses, institute […]
Most business owners don’t understand that it is never too early to start planning for when you will exit your business and sell it. No matter what that sale looks like, you will need to be prepared, and for California wholesale distribution business owners, this is no different. In fact, some advisors will tell you […]
No matter what the time or situation, janitorial services are often in demand, in California and elsewhere. In light of the events of 2020, even more companies are outsourcing their janitorial and cleaning services to professional companies. Now may be one of the best times for selling a janitorial services company in California. Here are […]
Even before the latest COVID-19 pandemic began, various international moves like elevated tariffs from China and essential trade wars beginning, companies began to argue for domestic manufacturing. That started an interesting discussion in the California manufacturing industry and beyond. With a global pandemic putting countries on lockdown, and slowing the flow of imports and exports […]
For those in the construction and remodeling business, it is hard to know what is next and when for the construction industry. While in many areas where new construction was booming, things have ground to a halt. On the other hand, many municipalities are funding paving and infrastructure projects now, while fewer cars are on […]
In this time of isolation and products that are in high demand, the wholesale distribution business in California is an essential one. That means this is a time of both challenges and business opportunities. The key is to know which is which, and how they relate to your business now and in the future. Here […]
Due to the COVID-19 pandemic, many businesses in California are struggling with understanding which businesses are essential and which ones are not. While some cleaning services are considered to be essential, there have been debates about everything from landscaping to tree services. At the same time, since many businesses have closed, for the time being, […]
Service business valuation when it’s time to sell your business services company in California, the very first step is to value your business. This is true no matter what business you are preparing to sell. It makes sense of course; you can’t sell something until you know what it is actually worth. But why, exactly […]
The last few months have been exceptionally interesting as I have been assisting the owner of a manufacturing company sell his Silicon Valley, California business. This business is exceptionally successful. It enjoys an annual EBITDA of over $1 million per year. As a result, there has been huge buyer interest not only from within the […]
There’s a lot of talk about manufacturing in the news, everything from trade and tariffs to Brexit and other current events, like the attempt to contain the spreading coronavirus. What all of it really means is that there are some great opportunities for domestic manufacturing companies. There’s really a no better place for these companies […]
BizBuySell.com is one of the websites that allows the advertising of the sale of small businesses. It is one of the many websites I use to find a qualified and motivated buyer of a business. The location of these businesses being advertised for sale are anywhere in the United States. Each quarter BizBuySell.com prepare a […]
It’s that time of year again. The time to sign up for a gym membership only to cancel it in February or register for that triathlon you want to finally do, but only the one with a refundable deposit. It’s also time to talk about New Year’s Resolutions vs. business goals. The reason is simple. […]
With Thanksgiving, Black Friday, Cyber Monday now behind us and the cooler weather including rain for those of us that live in California, its time to slow down and enjoy the upcoming Holiday Season! Happy Holidays to you and yours? For those of us that own a business, how was your 2019? Because I do […]
When you are selling your business, we always stress how important it is to be organized and to have certain documentation at your fingertips. This includes your taxes from the last three years, profit and loss statements, cash flow statements, payroll, bank statements, and more. Why? First, these documents show the current health of your […]
The success or failure of a business can change dramatically with one simple event, and this has never been truer in the California economy. As I write this article the wind is blowing harder than normal in Northern California. As a result, many PG&E customers are having their power cut to prevent the start of […]
As a small business owner, it is extremely tempting to try to do everything ourselves, including accounting. When you first start or purchase a business, this is not necessarily a bad idea. You need to know how to at least do the basics and read the reports your accountant sends you to make sure they […]
Business owners often struggle to know the value of their business. After all, what is this thing they have spent so much time building over the years really worth? One of the things that makes this difficult is understanding the value of the assets your business owns, but another is the simple value of your […]
As we often talk about here on our website, the first step to selling your business is to have a solid business valuation, so you know what your business is worth before you start the process of selling it. Because of how important this is, we offer a free tool to help you value your […]
The most important place to start if you are thinking of selling your business is to know its value. Almost without exception, a business owner thinks their business is worth more than it is. Equally, almost without exception, a business buyer thinks the business is worth less than it is. What a seller of a […]
When you are selling your business, there are a lot of things to keep in mind. One of the most important is cybersecurity. Why? In today’s world we do a lot of business on the internet, and pass things back and forth digitally. But keeping that information secure is just as vital when selling your […]
When we talk about buying or selling a business one of the first topics is the due diligence process. What does that mean for the seller? What should the buyer be looking for? The answer is contained in a long and thorough checklist. As a seller, it means you must be prepared to present paperwork […]
One of the active places to list a business for sale is the national website BizBuySell.com. BizBuySell has been active in the businesses for sale marketplace since 1995. Because of their unique position collecting and presenting information to the public about the market to buy and sell a privately held business, here is the latest […]
We’ve talked before on this site about the first step in selling your business is business valuation. We have also mentioned that one of the first steps in a business valuation is recasting your books. But what does this mean, how do you do it, when, and why? The truth about most businesses and business […]
When: On Saturday June 15, 2019 from 8.00am to 5.00pm Where: American River College, Sacramento, CA Why: Because owning your own business is something you’ve always wanted to do. More information: www.VeteranEntrepreneurSummit.vet Three non-Veteran Service Organizations – Veterans Launch, The Rosie Network and the National Transition Services, Inc (aka REBOOT) are bringing together business experts. […]
This is a fascinating question as you think the answer would be very simple. What does it take to really sell your business? The answer is that it is anything but simple to sell a business. And here are several reasons. Selling your business comes with complications The consensus would be that the price of […]
As a business broker who helps those selling a business find the right buyer at the right time, but also who connects those buyers with the sellers who are right for them, the question often comes up “what about starting my own business from scratch?” It’s a fair question and one that deserves a deeper […]
Small business valuation is a must-do if you are thinking of selling your business or thinking of buying one, one key is to know exactly how much the business is worth. How can you know what to ask for your business or what to offer for one you wish to purchase if you don’t know […]
When selling any kind of business, there are challenges that come along with it. This is especially true of certain service businesses. You not only have to find the right buyer, but they need to have certain skills and passions in order to really make the business work. As an example, let’s look at an […]
Andrew Rogerson, the owner, and operator of Rogerson business services is no stranger to owning a business himself. Between the businesses he owned in his native Australia to those he has owned and operated in the United States, he has an intimate knowledge of what it means to run a business. He’s sold his own […]
There is a great quote that appears to have be attributed to different people. The quote goes as follows: “Experience is the best teacher.” Earlier this year Rogerson Business Services finally closed the sale of a Tree and Landscaping business that we thought would never happen. As ‘experience is the best teacher’, here’s have a […]
As the Baby Boomers who own a business, continue to retire and therefore try to sell their business, its interesting to see what’s happening or the trends. BizBuySell.com is one of the websites I use to market a business for sale. Recently they released a report with statistics about the sale of businesses during 2018. […]
You’ve decided to sell your business. But who knows your business better than you do? Who can give a buyer the most compelling argument for why they should buy your business over another one in your niche? Besides, you know how to read a contract and even draw one up. It’s a part of being […]
Buying or selling your business is not something that you do every day, and you will likely need some guidance to do so. While a real estate agent may be able to value your property and help you sell that, when it comes to selling a business, they simply don’t have the specialized knowledge needed. […]
The term small business size has a variety of meanings. Not just to you and your customers but also to any one of the many government agencies that impact how you operate your company. You may think of a small business as the mini-mart down the street but your operation with dozens of employees and […]
Is it time to value and sell your business? Selling and buying a business requires only one set of circumstances. There must be a motivated seller AND there must be a motivated buyer. Period. If you have a motivated seller but an interested buyer the sale of the business will not happen. If you have a […]
Middle market business sales with 2017 coming to a close, it’s an opportune time to consider what we’ve learned. Private equity firms raised over $200 billion globally this year as of December. By the end of the third quarter, the U.S. middle market had completed $233 billion in deals, according to PitchBook third-quarter data. This […]
Research shows that small and medium enterprises (SME) or Main Street companies valued at $2-50 million are going to market because of private equity firm (PEF) recapitalization. The Market Pulse Report, which is published quarterly by the International Business Brokers Association (IBBA), M&A Source, and the Pepperdine Private Capital Markets Project, explains that private equity […]
A buy-sell agreement is a pre-designed roadmap or playbook that can help address a number of issues at a critical time in the life of a business. A buy-sell agreement allows business partners or corporate shareholders to agree to the terms and conditions of a future sale before it happens… the contract provides specific directions […]
Buying or selling a business may appear to be a simple process, but to seasoned business advisors like Andrew Rogerson in Sacramento, these transactions have a multitude of issues that must be resolved. This includes things like the type of transfer that best fits the situation; the circumstances that are dictating the transfer; if the […]
The economic climate is strong for buying or selling a business in Sacramento, a recent report says. It was recently announced that the number of Sacramento area businesses sold on listing service BizBuySell hit a three-year high in the second quarter of 2017. The median asking price of small businesses for sale in and around […]
It’s no secret that between 70% to 90% of deals fail to meet the parties’ expectations. However, what may not be as readily known is the underlying causes for this failed M&A activity. Here’s what you need to keep in mind in order to prevent failed acquisitions. Integration As you start to investigate an acquisition […]
Terry Flanagan, by profession is a business appraiser and therefore prepares business valuations. What’s one of the many interesting things about Terry, though, is that his original training was as a Chiropractor where he owned and operated his own Chiropractic practice in the Chicago suburb of Palos Heights and so an important focus of the […]
A survey was recently released by BizBuySell that asked business owners if they believe the new disruptive technologies such as Amazon, Uber and Airbrb affect the value of their business. One of the results of the survey showed that nearly 40% of business owners consider new technologies affecting their business value. The survey also asked […]
Ney Grant from Woodbridge International was my guest on 105.5FM and Money 2.0 in 2013. Woodbridge International focuses on buying and selling companies that are “middle market”; companies that have a net income of a million dollars or more. Ney shares how selling a middle market differs from smaller mainstream business brokering. He says the […]
The price of a business that goes onto the market is critical. If the price is wrong the chances of selling go down considerably. The bad news is that only one in 4 businesses actually sell. Having the wrong price on the business for sale is one of the reason 75% of businesses never sell. […]
The Downtown Sacramento Partnership is a private, non-profit organization dedicated to the improvement of Sacramento’s central business district. The Downtown Sacramento Partnership oversees maintenance, safety, and revitalization programs financed by the Downtown Sacramento Management District, a property assessment district established in 1995 and renewed in 2000. Valerie Mamone-Werder is the Business Recruitment Manager for the Downtown […]
Some companies consider customer service as a necessary evil, forced because of either a problem in the production system or from the inabilities of the consumer. These companies believe that a perfect world would not need customer care. But smart businesses know that a customer service department is an investment in marketing, brand loyalty, and […]
A family business is unlike any other business as it has its own unique characteristics. Those unique characteristics are obviously the family dynamics and while it generally binds a family together when there is adversity, it can divide and create divisions and antagonisms that run deep. However, just like any business, a family business has […]
Fred Hall, CEO of Amador Appraisals and Acquisitions, joined me on Money 2.0 to discuss the complexities of business appraisals. Fred specializes in business valuations for SBA loans, IRS valuations, divorce, and minority share owner appraisals.
Regular health checks are critical to the success of your business. According to the SBA (US Small Business Administration), over 50% of small businesses fail in the first five years of trading, and when the figures also include larger scale companies, this figure rises to a rather bleak 60%, or 6 out of every 10.
Is it time to raise your business standards? As a general rule, I think you will agree that small business owners are a very diverse group.
How much effort do you make to understand your business financial statements? Owning and operating a business requires a diverse range of skills.
Should I consider an earn-out when selling my business? If you own a business and you think it is time to sell, an option to add to your tool kit is whether or not you would be willing to receive an earn out as part of the purchase price of the business.
Do you use Key Performance Metrics to run your business? One of the truisms I’ve come to believe wholeheartedly is that no business owner is good at every aspect of owning and operating a business.
To be a little clearer, the skills to own and operate a business are many and varied. What tends to attract a business owner to operate their own business is a self belief that they can do one or two aspects of running a business very well and either hire the skills they lack or learn these with time.
If you watch the TV channel CNBC and in particular Larry Kudlow’s show called ‘The Kudlow Report,’ you will hear his constant preaching that “free market capitalism is the best path to prosperity.”
When trying to sell your business, getting an appraisal is beneficial for a number of reasons. Understanding what assets are part of the sale, removing any personal items that aren’t for sale and deciding the worth of your business with a professional ensures success when trying to sell your business. This article outlines the benefits of an appraisal and why it is critical when selling your business.
Do thoughts of selling your business ever cross your mind? As a business owner you certainly know that the day will come when you will walk away from your company’s operations.
If you’re looking to sell a business, it’s critical to look at the value of the business. But a typical business really has two values.
EBITDA Multiple For Manufacturing Companies Simplified: A Guide for Biomedical and Medical Devices Manufacturers
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How Many Times EBITDA Does A Company Sell For
Retirement decisions can be complicated, especially for Californian business owners! But lucky them...
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