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Everyone who owns a business needs to know it's value in today's national and international marketplace. Especially as part of a sale or transfer of ownership a business valuation as defined by the SBA is required especially if there is lending involved.  We also recommend valuations for businesses over $1M in value.  We work with several companies (arms length) that provide valuations nationwide on a variety of businesses.  One of them is local and can easily handle onsite management consulting engagements.

Having an independent, third-party certified business appraisal is vitally important if you are considering:

  • Selling your business.
  • Financial Estate Planning.
  • Succession Planning for your business to a family member.
  • Setting a basis for a C to S Corporate Conversion
  • Looking for ways to increase the value of your business.

Business Brokers of San Antonio has a strategic relationship with several local and national third party companies for business valuation. They specialize in privately held companies and small business valuations using Fortune 500 valuation techniques adapted for the privately held business market.  Here are several options that we provide:

  1. Opinion of Value: An estimate of the most probable sales price (MPSP) for a business based on our experience (note that this is not a true certified business valuation.  It only uses the market comparable analysis technique based on a business' SIC or NAICS code from several databases of closed business transactions).
  2. Calculation of Value (or “Value Calculations”) The objective of a Calculation of Value is to provide an approximate indication of value based upon the performance of limited procedures agreed upon by the appraiser and the client.  Although we try to follow USPAP, calculation reports are not officially considered an appraisal by the Uniform Standards of Professional Appraisal Practice, however it does allow for “adequate” and ”reasonable” care to our clients.  Developed for our business intermediary clients, Calculation of Value reports are utilized to provide a “preliminary” value for the broker to list their client’s business for sale and to be utilized until a Complete Appraisal is required.
  3. Complete Appraisal Summary Report – Also called an “Abbreviated” or “Letter Form Written Report”, this abbreviated form of report is the minimum level of reporting embraced by the Institute of Business Appraisers (IBA) – BV Standards, but still meets USPAP requirements.  The report contains at least a summary of the material factors that leads to the conclusion, but is usually intended to reduce the normal appraisal burden of writing a comprehensive report, and thereby allowing the client to realize some economic benefit.  However, the appraiser is still required to perform materially the same investigation and analysis as would be required for a complete self-contained report and maintain in his/her files the work papers necessary to support the conclusions stated in the summary report.
  4. Complete Appraisal Self Contained Report – This is a formal presentation of the value of a business in a self-contained written report. If a valuation has the potential to go to court or if the report needs to be reviewed by others, such as the IRS for tax implications, this type of report explains in full detail how the value was derived.  Uniform Standards of Professional Appraisal Practice (USPAP) and American Society of Appraisers (ASA) address the above as a “Comprehensive, Written Business Valuation Report”.  The Institute of Business Appraisers (IBA) addresses the above as a “Formal Written Report”.  

Your Advisor will help you determine which business appraisal best suits your needs. The Advisor will also help you gather the information necessary for the appraisal and assist in packaging it to be sent to a third party Certified Business Appraisal Service.

Contact Business Brokers of San Antonio for more information.