We Offer A Complimentary Opinion Of Value

Gush & Associates LLC

What Is Your Company Worth?

I believe the Opinion Of Value is an essential document the business owner/seller should receive early on in the selling process of his business. It is a market based comp developed from current listed and sold businesses in your industry, industry segment, and size. It quantifies what I believe the market will pay for your business.

How else is the owner to understand what he’ll get for his business, or what the business broker or M&A advisor should recommend as to the listing and selling price. Without it, neither the business owner-seller nor the business broker / M&A advisor can make knowledgeable and informed decisions. Since it is so essential, I offer it complimentarily... No fee.

For the preparation of the Opinion Of Value, I will need the past 3 years of financials, including income statements and balance sheets, as well as, year-to-date financials. In addition, list your add backs, which are all financial benefits you, as owner, take out of the business. They include your owner salaries, bonuses, benefits, insurance, and perks like charity, travel, personal expenses, etc. Don’t forget to include family members too.

If you have questions here, call me, talk with your CPA, or put me in touch with your CPA, with whom I’d be happy to discuss further. Also, identify your website URL. I will review and contact you for any further information I might need. In one to two weeks I will forward to you a market-based Opinion of Value.

You will then have a benchmark and pricing range approximating what I feel the market might pay for your business, and what your company might generate to you in the way of remuneration and cash.

A key metric in pricing or valuating the price of a business centers on the ‘Seller’s Discretionary Earnings’ (SDE) multiple for businesses under $5 million in value or the company’s EBITDA multiple, (earnings before interest, taxes, depreciation and amortization) for businesses above $5 million in value.

Research tells us in the past few years, businesses with values above $50 million sold for mean multiples of 8x to 10x EBITDA; those between $25 to $50 million for about 6x; and those between $5 to $25 million, 4x to 6x EBITDA; and those businesses with a value between $2 million to $5 million, sold for a mean of about 3.0x to 4.0x SDE.



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