This document provides a business valuation for ABC Company prepared by American Fortune Business Valuation for John R. Smith, the owner of ABC Company. The valuation estimates the fair market value of ABC Company as of January 3, 2013 to be $2,875,491. The valuation considers income, market, and asset approaches and adjusts the company's financial statements to eliminate discretionary expenses and non-operating items in order to determine normalized cash flows. Certain portions of the full valuation report are encrypted for the client's exclusive use.
Presentation given by Jim Turner, CPA and President of Turner Business Appraisers for as part of South Piedmont Community College's Small Business Center Continuing Education Workshops. This presentation was given on valuing a small business.
Presentation to the April 2012 American Gem Society Conclave on Business Valuation in connection with succession, gift and estate planning and buy/sell agreements
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
Three major business valuation methods that A Business Valuator will use to tabulate a fair price for your business are market value, asset-based and ROI-based business valuation methods. They all have the same objective of determining the current values of your company.
Glen Birnbaum, CPA presents to local Peoria IMEC group on the business valuation process. The target audience was to manufacturing clients. Heinold Banwart, Ltd.
Presentation given by Jim Turner, CPA and President of Turner Business Appraisers for as part of South Piedmont Community College's Small Business Center Continuing Education Workshops. This presentation was given on valuing a small business.
Presentation to the April 2012 American Gem Society Conclave on Business Valuation in connection with succession, gift and estate planning and buy/sell agreements
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
Three major business valuation methods that A Business Valuator will use to tabulate a fair price for your business are market value, asset-based and ROI-based business valuation methods. They all have the same objective of determining the current values of your company.
Glen Birnbaum, CPA presents to local Peoria IMEC group on the business valuation process. The target audience was to manufacturing clients. Heinold Banwart, Ltd.
The recent economic growth coupled with uncertainties has resulted in the stakeholder's curiosity and interest in Valuations of their respective investee Companies and also the estimated Valuations of the Targets available for Sale which has led to a greater demand for Business Valuation services.
Since as of now there are no Regulated standards for Valuation in India, numerous conceptual controversies still remain, even among the most prominent practitioners. With a view to give an overview of the Valuation concepts in general and the practical issues in particular, www.corporatevaluations.in, an online venture of Corporate Professionals Capital, SEBI Registered Merchant Banker has prepared this report on "Insight of Valuation". Hope you find it useful. Suggestions for improvement are invited @ info@corporatevaluations.in
Monetary worth calculation is one of the major strategy for business growth. Business valuation is used to determine the economic worth of a business. The aim behind this presentation is to let readers know about different things in which business valuation can be utilized and the various types of business valuation methods.
http://www.authorstream.com/Presentation/transitionequity-3785202-widely-adopted-methods-business-valuation/
This is a discussion of the methods and uses of business valuation techniques. This webinar was presented by Theresa Seidler-Shonat, a Business Valuation Specialist from Smith & Gesteland, a Madison, Wisconsin accounting and consulting firm.
Business Valuation - Ten Things You Need to KnowJim Turner, CPA
In this presentation you will learn the most important driver of a business valuation, how to make your business more valuable, SBA business valuation tips, and much more. Discover whether revenue or cash flow is generally more important. You will learn the approaches used to value a business.
In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.
Mel feller looks at creating a more profitable businessMel Feller
Mel Feller Looks at Creating a More Profitable Business
Making a profit is the most important - some might say the only - objective of a business. Profit measures success. It can be defined simply: Revenues - Expenses = Profit. Therefore, to increase profits you must raise revenues, lower expenses, or both. To make improvements you must know what is really going on financially at all times. You have to watch every financial event without any kind of optimistic filter.
This article is a series of questions with comments to help you analyze your profits, their sufficiency and trend, the contribution of each of your product lines or services to them, and to help you determine if you have the kind of record system you need. The questions and comments are not meant to be definitive presentations on the subjects.
A great paper penned by my colleague Ian Smith that addresses common concerns of business owners with respect to a sale of their business. If you are currently considering your options, or have a client that is currently considering an exit, please feel free to reach out to us directly and we'd be happy to have a chat.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Corporate Valuations “Techniques & Application”: A compilation of research oriented valuation articles.
Contents: Business valuation, Relative valuation, Sum of the parts valuation and value creation, ESOP valuation, Discounted Cash Flow Valuation, Enterprise Valuation etc.
The recent economic growth coupled with uncertainties has resulted in the stakeholder's curiosity and interest in Valuations of their respective investee Companies and also the estimated Valuations of the Targets available for Sale which has led to a greater demand for Business Valuation services.
Since as of now there are no Regulated standards for Valuation in India, numerous conceptual controversies still remain, even among the most prominent practitioners. With a view to give an overview of the Valuation concepts in general and the practical issues in particular, www.corporatevaluations.in, an online venture of Corporate Professionals Capital, SEBI Registered Merchant Banker has prepared this report on "Insight of Valuation". Hope you find it useful. Suggestions for improvement are invited @ info@corporatevaluations.in
Monetary worth calculation is one of the major strategy for business growth. Business valuation is used to determine the economic worth of a business. The aim behind this presentation is to let readers know about different things in which business valuation can be utilized and the various types of business valuation methods.
http://www.authorstream.com/Presentation/transitionequity-3785202-widely-adopted-methods-business-valuation/
This is a discussion of the methods and uses of business valuation techniques. This webinar was presented by Theresa Seidler-Shonat, a Business Valuation Specialist from Smith & Gesteland, a Madison, Wisconsin accounting and consulting firm.
Business Valuation - Ten Things You Need to KnowJim Turner, CPA
In this presentation you will learn the most important driver of a business valuation, how to make your business more valuable, SBA business valuation tips, and much more. Discover whether revenue or cash flow is generally more important. You will learn the approaches used to value a business.
In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing and financing activities.
Mel feller looks at creating a more profitable businessMel Feller
Mel Feller Looks at Creating a More Profitable Business
Making a profit is the most important - some might say the only - objective of a business. Profit measures success. It can be defined simply: Revenues - Expenses = Profit. Therefore, to increase profits you must raise revenues, lower expenses, or both. To make improvements you must know what is really going on financially at all times. You have to watch every financial event without any kind of optimistic filter.
This article is a series of questions with comments to help you analyze your profits, their sufficiency and trend, the contribution of each of your product lines or services to them, and to help you determine if you have the kind of record system you need. The questions and comments are not meant to be definitive presentations on the subjects.
A great paper penned by my colleague Ian Smith that addresses common concerns of business owners with respect to a sale of their business. If you are currently considering your options, or have a client that is currently considering an exit, please feel free to reach out to us directly and we'd be happy to have a chat.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Corporate Valuations “Techniques & Application”: A compilation of research oriented valuation articles.
Contents: Business valuation, Relative valuation, Sum of the parts valuation and value creation, ESOP valuation, Discounted Cash Flow Valuation, Enterprise Valuation etc.
INNOVATION: 10 Ways to Innovate for Entrepreneurs and ManagersRishabh Dev
Innovation is not invention. It is in a new product or service, and in how we build a new product or service. It is in the business processes, and in how we manage those business processes. This presentation is about 10 ways you can innovate in your startup or business.
98C H A P T E R3 Measuring Business IncomeI ncome, o.docxevonnehoggarth79783
98
C H A P T E R
3 Measuring Business Income
I ncome, or earnings, is the most important measure of a com-pany’s success or failure. Thus, the incentive to manage, or mis-
state, earnings by manipulating the numbers can be powerful, and
because earnings are based on estimates, manipulation can be easy.
For these reasons, ethical behavior is extremely important when
measuring business income.
L E A R N I N G O B J E C T I V E S
LO1 Define net income, and explain the assumptions underlying
income measurement and their ethical application. (pp. 100–104)
LO2 Define accrual accounting, and explain how it is
accomplished. (pp. 104–106)
LO3 Identify four situations that require adjusting entries, and
illustrate typical adjusting entries. (pp. 107–116)
LO4 Prepare financial statements from an adjusted trial
balance. (pp. 116–119)
LO5 Use accrual-based information to analyze cash flows.
(pp. 119–120)
Making a
Statement
Revenues
– Expenses
= Net Income
INCOME STATEMENT
STATEMENT OF
OWNER’S EQUITY
Beginning Balance
+ Net Income
– Withdrawals
= Ending Balance
BALANCE SHEET
Assets Liabilities
Owner’s
Equity
A = L + OE
STATEMENT OF CASH FLOWS
= Ending Cash Balance
Operating activities
+ Investing activities
+ Financing activities
= Change in Cash
+ Beginning Balance
Adjusting entries affect the
balance sheet and income
statement but not the
statement of cash flows.
# 103261 Cust: CENGAGE Au: Needles Pg. No. 98
Title: Principles of Accounting Server: Jobs
C/M/Y/K
Short / Normal / Long
DESIGN SERVICES OF
S4CARLISLE
Publishing Services
37744_03_ch03_p098-141.indd 9837744_03_ch03_p098-141.indd 98 12/4/09 11:51:01 AM12/4/09 11:51:01 AM
Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
99
� What assumptions must Reliable
Answering Service make to
account for transactions that
span accounting periods?
� How does Reliable assign its
revenues and expenses to the
proper accounting period so
that net income is properly
measured?
� Why are the adjustments that
these transactions require
important to Reliable’s financial
performance?
DECISION POINT � A USER’S FOCUS
RELIABLE ANSWERING
SERVICE
99
Reliable Answering Service takes telephone messages for doctors,
lawyers, and other professionals and relays them immediately when
they involve an emergency. At the end of any accounting period,
Reliable has many transactions that will affect future periods. Exam-
ples appear in the company’s trial balance on the following page.
They include office supplies and prepaid expenses, which, though paid
in the period just ended, will benefit future periods and are there-
fore recorded as assets. Another example is unearned revenue, which
represents receipts for services the company will not perform and
earn until a future period. If.
The Ultimate Business Valuation Guide for 2023.pdfJeremiah Grant
The Ultimate Business Valuation
Guide for 2023
Valuing a company at different stages of its development can provide valuable insight into the state
of the company’s finances as well as the company’s current and future market position and sales
potential. Whether you are planning to sell tomorrow or just trying to gauge where you stand
compared to the competition, you can benefit from having an idea of your company’s worth. This
blog aims to provide you with a complete guide to business valuation and equip you with the
knowledge you need to apply it to your operations. So let’s kick off with an introduction.
Business valuation: A brief
introduction
Companies can have their worth estimated through a method called “business valuation” or
“company valuation.” Throughout the valuation process, every aspect of a company and each of its
subunits is evaluated to establish a dollar value.
Company valuations are performed for many purposes, including but not limited to determining a
business’s fair market value in preparation for sale, determining who owns what shares of a
business, settling tax disputes, and settling marital property disputes. In addition, many business
owners consult with external business evaluators to objectively assess their company’s worth.
Understanding the business
valuation basics
Valuation is a common topic of conversation in the world of corporate finance. If your company is
considering the sale of all or part of its operations, a merger, or an acquisition, you will likely want get
your business valued. However, when valuing a company, it’s important to consider all of the factors
that contribute to the company’s current worth to arrive at an accurate estimate.
Considerations such as management, capital structure, future earnings potential, and market value
of assets may all go into a business’s valuation. Valuation methods and techniques can range widely
between professionals, companies, and sectors. For example, financial statement analysis,
discounted cash flow models, and peer company comparisons are typical methods used to
determine a firm’s worth.
Furthermore, accurate valuation is essential for tax purposes. For tax purposes, the IRS (Internal
Revenue Service) mandates that a company’s worth be determined by its current fair market value.
For example, a firm’s shares may be subject to capital gains or gift taxes upon sale, purchase, or
transfer of ownership.
After the basics business valuation benefits must be understood to know why it’s critical in the
present era to get it done.
Benefits of business valuation:
Why should you get it done?
By considering a company’s workforce, assets, intellectual property, earnings, growth, and losses,
an appraisal or valuation can accurately portray the company’s current economic value.
Every business owner, for whatever reason, should think about having their firm valued once a year.
Being confident in the company’s real value will help the owner(s) make the right decision.
'Business valuation' stands as a cornerstone for numerous transactions, decisions, and analyses
in the complex world of business. Whether your business is an asset you plan to sell or
something you plan to pass down to your family, it is very important to understand the nuances
of business valuations. This article aims to clarify the concept of business valuation and shed
light on getting a professional business valuation.
Mercer Capital's Tennessee Family Law | Q2 2019 | Valuation & Forensic Insigh...Mercer Capital
Mercer Capital is the largest valuation and financial advisory firm in Tennessee with offices in Nashville and Memphis. Complex financial issues are a critical part of many of your client engagements. The focus of this newsletter is to provide useful content about these financial issues from the perspective of financial experts. We seek to help you assist your clients in financial and accounting matters.
A presentation about the Cash Flow Statement ,whole chapter is covered in the slides .one can easily understand the concept of cash flow statement
and a video is also there but link went missing so please search it on youtube by the name of "cash flow statement in 3-min" a beautiful video to understand the basic concept of cash flow statement.In the end a numerical has solved for the better understanding ,which let u fetch marks in your examinations.
Understand the Value of Your Insurance BrokerageMercer Capital
Understanding how insurance agencies and brokerages are actually valued may help you understand how to grow the value of your business and maximize your return when it comes time to sell. The purpose of this whitepaper is to provide an informative overview regarding the valuation of insurance brokerages and agencies.
I need a 100 word reply to each of the following forums (total 800 w.docxtroutmanboris
I need a 100 word reply to each of the following forums (total 800 words)
Statistics Forum #1
As stated in my previous discussion, my supervisor uses a spreadsheet called a CEMASTER which allows her to see our credentials like how long we have been with the company, our skills, our wages, our bonuses, and what training we need to advance. A confidence interval gives an estimated range of values which could include an unknown population parameter. If my supervisor were to add confidence intervals this would give her a percentage probability that an estimated range of possible values includes the actual value that is being estimated. For example, she could use this information when its time to evaluate if we are eligible for our yearly raises.
Statistics Forum #2
After reviewing my pervious example on estimates I can understand why people do not entirely trust single point estimates. Our book states that “
The
confidence
interval
of
the
population
mean
is
a
range
within
which
the
value
of
an
unknown
population
mean
has
a
specified
probability
of
occurring
”
(Tanner & Youssef-Morgan, 2013).By adding confidence intervals we are able to narrow the number down. I asked a manager in human resource who keeps of the schedule to include time off, sick day, and no shows if she would prefer a signal point estimate or a range . She told me that she would prefer the range estimate. She agreed with our text witch states “
a
range
of
numbers
within
which
the
true
percentage
of
spoilage
will
occur
with
a
stated
probability”
(Tanner & Youssef-Morgan, 2013)
.
I also asked another person in the HR office and he thought the range estimate was also a better idea. They both felt that the numbers where better and more reliable for their job. They stated that when dealing with a large employee population it would be better to get a range that encompasses the possibilities in numbers.
Statistics Forum #3
Chi – Tests are also called distribution – free tests and no assumptions are needed about how the data are distributed and there are no requirements regarding their scale. I think a good example of a chi – test would be how your grades have changed over the course of a year. You would compare last year results to this year results. The results would tell you whether your grades improved over a years time.
Statistics Forum #4
Our book states that “chi-square is a test of the independence of two nominal scale variables” (Tanner & Youssef-Morgan, 2013)
.
I would have used the chi-square test when purchasing a new car. There are difference in overall cost to consider. To include the sticker price, taxes, the mpg and general repair the car would need in its first few years. “Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis” (Pennsylvania State University, 2013). I could get a better understanding on the overall cost on car owners.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
1. American Fortune Business Valuation
BUSINESS VALUATION
Portions of the Valuation are Encrypted
ABCCompany
Prepared for:
John R. Smith, Owner
Prepared by:
Brian S. Mazar, CBI, MBA, AVA
The information contained herein is of a confidential nature and is intended for the exclusive use of the persons or firm for whom
it was prepared. Reproduction, publication or dissemination of all or portions hereof may not be made without prior approval
from American Fortune.
2. 505 Third Street, Suite 301
Louisville, KY 40204
1/8/2013
Mr. John R. Smith, Owner
ABC Company
1111 First Street
Sacramento, CA 95816
Dear Mr. Smith:
At your request, we have prepared a Summary opinion of the Fair Market Value of 100% of
ABC Company as of 1/3/13. The Summary Valuation is designed to serve as an indication of
value to the party requesting the valuation. For purposes of defending a valuation with other
parties and their Advisors an Intermediate or Comprehensive Valuation is typically required.
The standard of value used in our valuation of ABC Company is Fair Market Value. Fair
Market Value is the price (in terms of cash or equivalent) that a buyer could reasonably be
expected to pay and a seller could reasonably be expected to accept if the business were offered
for sale on the open market for a reasonable period of time with both buyer and seller being in
possession of the pertinent facts and neither being under any compulsion to act. If used in the
sale of this business, the valuation assumes an Asset Sale of a debt free business and is not
inclusive of cash or receivables held by this company.
As a norm in valuation methodology, a 5-4-3-2-1 Weighted Average of Discretionary Earnings
is normally taken by the Valuator.
In this Summary Valuation we have considered income, market and asset approaches. Based on
the results of these valuation approaches and methods and considering other relevant data, we
have estimated the Fair Market Value of 100% of ABC Company as of 1/3/13 to be
$2,875,491. The opinions expressed in this valuation are contingent upon the conditions set forth
in the Appraisal Procedures section and the Statement of Assumptions and Limiting Conditions
that are a part of this report.
On a personal note, I sincerely appreciate this opportunity to do business with you and trust this
valuation will meet your needs. Please contact me in the future should your business needs
change.
Respectfully submitted,
Brian S. Mazar, CBI, MBA, AVA
American Fortune Mergers & Acquisitions, LLC
3. Business Valuation Factors
Dum considerat factores pro aestimasset negotium suus 'maximus ut intellegere periculo / cash
flow necessitudinem semper erit main consideratio vero negotium est scriptor valorem. Fretus moli
comitatu, Seller scriptor ANECLOGISTUS CAPTURA (SDE), CAPTURA Antequam Interest,,
tributum: imminutiones et AMORTIZATIO (EBITDA) vel CAPTURA Antequam Interest et
tributis (EBIT) sunt omnes vexillum campester of Moderatis cash flow qui potential buyers mos
inviso ut rationem determinandi pretium.
Ultimate, suus 'praesens valor futurae cash flow qui potentialem emptor est emendo. Emptori etiam
habet assident periculo miscen turma, facultatem ad generandum illa futura cash flow. Determinare
cash fluunt, deducuntur Statement debet normalized per adjusting pro discretionis (personali), non-
recurrente, et non-negotium related expensis. Illa items saepe relatum ut ut adaugeo-terga aut
adjustments. Traditionally, majores turmas habent plerumque valde pauci "adjustments" durante
ordinationem processus, cum minor turmas communiter sunt oppositum.
Ut facile falso aere dato quod eo manant, rem carius. Hoc non est necesse vera. Pro exemplo, si vos
have comitatu cum decedens venditionesque trend et varietatem of "personalis adjustments", qualis
auto, et itinerantur et entertainment et non-operating salaria, ad eorum deducuntur Statement, hoc
esset indicant a significant financial periculo. Rem verisimile esse pendenda humiliores quam alius
commisceamini cum lautus financial records (pauciores "adjustments").
Pro officio et possessori, is est maximus intelligi quod periculo erit incursum etiam vestri vexillum
scriptor valorem. Periculum possunt come in multas formas talis ut financial periculo, procuratio
periculo, technicitate periculo et industria periculo nominare paucis. Sed ubicumque periculo
potest identificatur, severitatem qui periculo habebit effectum in dolor valoris in uno vel alio modo.
Quia profitability et resultans cash flow est maxime significant agitator a vexillum scriptor
valorem, is est maximus ut eliminate quantum periculo miscen dolor cash flow ut possibile in
antecessum venditionis tuo contubernio accedat.
4. SCOPE OF SERVICE
The purpose of this valuation is informational. This report is prepared for ABC Company and
should not be used by others.
Our opinion of Fair Market Value relied on a “value in use” or “going concern” premise. This
premise assumes that the Company is an ongoing business enterprise with management operating
in a rational way with a goal of maximizing shareholder value.
Our analysis considers those facts and circumstances present at the Company at the Valuation
Date.
To arrive at a conclusion of Fair Market Value, we performed the following Procedures:
1. Collected the Company's relevant historic financial statements.
2. Analyzed the historic financial statements by calculating financial ratios and common-
size financial statements for each historic year in order to identify trends.
3. Compared the Company's financial ratios and common-size financial statements to
industry guideline data to identify any significant variances.
4. Developed risk-adjusted Capitalization and Discount Rates to apply to the Company's
historic and projected earnings, respectively.
5. Collected and analyzed transactional data from comparable companies within the same
industry.
6. We also gathered subjective information on the business such as industry trends,
competition, style of ownership, mode of operation, customer concentration, products
mix, etc.
7. Collected market comps on sold businesses.
8. Adjusted historic earnings to eliminate the effects of excess and discretionary expenses,
non-operating revenues and expenses, and non-transferable revenue streams.
9. Utilized Income, Market, Asset and Other valuation approaches to determine an estimate
of Total Entity Value. The following methods were considered under each approach:
a. Income Approach
Capitalization of Earnings and Discounted Future Earnings.
b. Market Approach
Price to Earnings, Price to Revenue, Price to Gross Cash Flow, Price to Cash
Flow from Operations, Price to Seller’s Discretionary Cash Flow, Price to
Dividends, Price to Book Value, Price to Total Assets and Price to
Stockholders’ Equity.
c. Asset & Other
Capitalization of Excess Earnings & Multiple of Discretionary Earnings.
10. Selected the most reasonable Total Entity Value from the range of values established in
the valuation methods and then applied any appropriate discounts to arrive at our
conclusion of the estimated Fair Market Value of the interest.
5. Recasting the Income Statement
Reditus figuras, a publicanus reditum accurate repraesentant vectigal ex omnibus fontibus. Tamen
in expensis capta facere publicanus reditum Inutilis presentation alibi. Items talis ut imminutiones,
discretionis impendio domini perks et pensitationes demitto rete lucrum figuris, quandoq praete erit
nulla tax redit. Offeréntes emptor aut ripam a financial constitutionis ostendens parva vel nihil
prodest est simpliciter inconveniens quando vendendo negotium vel postulasti promeritum vel
hypotheca. Emptores es non amo ut emo a negotio quod habet minimum lucrum vel damna
publicanum reverteris. Banks et fenerabis accipit mutuum pecunie cum adversa notitia solum in
angustus condicionibus.
Ex recasting reditus in hac missione est quod re-casted reditus constitutionis ostendam verum
repraesentatione negotium, magis quam credo aequiorem numeri pro venditore, emptor atque
fenerantis. In ordine ad conflare financial dictorum, sequenti items debet accomodati reflectere rei
haberet: possessorem salaria, nonrecurring expensis et fruetibus, Collocationes et non-operating
expensis, interesse pensiones, imminutiones sumptu, redditu sumptu, discretionis expensis, et
pensitationes. Ita fiet, accuratiorem et indubitabili presentation accepti quod ripis aut buyers uti
potest ad coniecturam Operatio de negotio, et quod dominum posse uti facere meliores negotium
decisiones
Calculation Of EBIDTA
Year 2008 2009 2010 2011 2012
Information Source
Tax
Return
Tax
Return
Tax
Return
Tax
Return
Tax
Return
1 Sales xxxxxx xxxxxx xxxxxx xxxxxx xxxxxx
2 Cost of Sales xxxxx xxxxx xxxxx xxxxx xxxxx
3 Operating Expenses xxxxx xxxxx xxxxx xxxxx xxxxx
4 Net Income / Unadjusted Pre-Tax Profit $545,000 $570,000 $370,000 $380,000 $520,000
5 Depreciation $35,000 $33,000 $32,000 $31,000 $30,000
6 Amortization $8,600 $8,400 $8,100 $7,600 $7,100
7 Interest on loans to business from all lenders $27,000 $26,000 $24,000 $32,000 $29,000
8 EBITDA (Total of Lines 4+5+6+7)
$615,600 $637,400 $434,100 $450,600 $586,100
9 Officer / Owner's salary $100,000 $100,000 $90,000 $100,000 $100,000
10 Adjusted EBITDA (Total of Lines 8+9)
$715,600 $737,400 $524,100 $550,600 $686,100
6. Calculation Of EBIDTA & Discretionary Earnings
11
Wages or payments to family members (non-
working)
12 Auto for owner's and/or spouse personal use
13 Auto insurance for owner's benefit
14 Auto repairs & maintenance owner's personal use
15 Contributions and donations $3,500 $4,000 $3,000 $3,000 $4,000
16 Fair market rent adjustment
17 Insurance premiums for owner's health, life, etc. $10,000 $10,000 $11,000 $11,000 $11,500
18
Professional services (legal / accounting) non-
recurring $3,000 $7,000
19 Retirement plan contributions $6,860 $13,768 $12,354 $4,675 $3,290
20 Meals & entertainment (personal) $1,400 $1,800 $1,500 $1,600 $1,900
21 Travel (personal) $2,000 $1,500 $2,500 $2,000 $3,000
22 One time expenses or (income)
23 Other benefits
24 Bank penalties
25 Personal credit cards pd by business
26 Non-essential memberships $5,000 $5,000 $5,500 $5,500 $5,500
27 Other:
28 Total Owner Discretionary Add-Backs $31,760 $36,068 $42,854 $27,775 $29,190
29 Adjusted EBITDA (line 10 above) $715,600 $737,400 $524,100 $550,600 $686,100
30 Equals Total Seller Discretionary Earnings $747,360 $773,468 $566,954 $578,375 $715,290
7. Financial Rules of Thumb
ABC Company
Financial Summary
2008 2009 2010 2011 2012
Total Discretionary Cash Flow 747,360 773,468 566,954 578,375 715,290
Weight 1 2 3 4 5
Indicator 747,360 1,546,936 1,700,862 2,313,500 3,576,450
Sum of Indicators 9,885,108
Sum of Weights 15
Weighted Cash Flow 659,007
Adjustments 0
Available Cash Flow 659,007
Capitalumum Ronte
Recognovit Cum Fit
Ratue
17%
Mulinate
5.88
Gravit Postalete 20% 5.00
Markumde 26% 3.85
Averagum 32% 3.13
Betuam Averagum Marcume 40% 2.50
Ponte Graum 44% 2.27
Entare Capitante 20%
TotaleTangiaboleAssote 546,420
8. Financial Rules of Thumb
ABC Company
Rules of Thumb
Rule of Thumb 1
Weigate Folone 659,007
Tangele Tonato 546,420
BanatoCabaloTono 15%
VenoreCebula 81,963
ExcuniSolono 577,044
Capotolen Kolar 25%
Valuante Patno 2,308,177
Adrune Ente 546,420
Totale Denivi 2,854,597
Rule of Thumb 2
Avilabole Tesa 659,007
EndtunumRiione 5.00
Totale Rione 3,295,036
Rule of Thumb 3
LastareBorlio 715,290
Casia Lino 2.70
Intangila Valurum 1,931,283
Adune Vanatuam 546,420
Totale 2,477,703
Summary
Valuare Wegule Extensipone
Rule of Thumb 1 2,854,597 33% 951,437
Rule of Thumb 2 3,295,036 33% 1,098,235
Rule of Thumb 3 2,477,703 33% 825,818
100% 2,875,491
10. ASSUMPTIONS AND LIMITING CONDITIONS
This valuation is subject to the following assumptions and limiting conditions:
Information, estimates, and opinions contained in this report are obtained from sources
considered to be reliable. However, we assume no liability for such sources.
The Company and its representatives warranted to us that the information they supplied
was complete and accurate to the best of their knowledge and that the financial statement
information reflects the Company's results of operations and financial condition in
accordance with generally accepted accounting principles, unless otherwise noted.
Information supplied by management has been accepted as correct without further
verification (and we express no opinion on that information).
Possession of this report, or a copy thereof, does not carry with it the right of publication
of all or part of it, nor may it be used for any purpose by anyone but the client without the
previous written consent of the client or us and, in any event, only with proper attribution.
We are not required to give testimony in court or be in attendance during any hearings or
depositions with reference to the company being valued unless previous arrangements
have been made.
The various estimates of value presented in this report apply to this valuation only and
may not be used out of the context presented herein. This valuation is valid only for the
purpose or purposes specified herein.
This valuation assumes that the Company will continue to operate as a going concern,
and that the character of its present business will remain intact.
The valuation contemplates facts and conditions existing as of the valuation date. Events
and conditions occurring after that date have not been considered and we have no
obligation to update our report for such events and conditions.
We have assumed that there is full compliance with all applicable federal, state, and local
regulations and laws unless otherwise specified in this report.
This report was prepared under the direction of Brian S. Mazar, CBI, MBA. Neither the
professionals who worked on this engagement nor SOLO Sale, Inc. have any present or
contemplated future interest in ABC Company and any personal interest, with respect to
the parties involved or any other interest that might prevent us from performing an
unbiased valuation. Our compensation is not contingent on an action or event resulting
from the analyses, opinions, or conclusions in, or the use of, this report.
11. VALUATION METHODOLOGY
The Income Approach serves to estimate value by considering the income (benefits) generated
by the asset over a period of time. This approach is based on the fundamental valuation principle
that the value of a business is equal to the present worth of the future benefits of ownership. The
term” income” does not necessarily refer to income in the accounting sense but to future benefits
accruing to the owner. The most common methods under this approach are Capitalization of
Earnings and Discounted Future Earnings. Under the Capitalization of Earnings method,
normalized historic earnings are capitalized at a rate that reflects the risk inherent in the expected
future growth in those earnings. The Discounted Future Earnings method discounts projected
future earnings back to present value at a rate that reflects the risk inherent in the projected
earnings.
The Market Approach compares the Company to the prices of similar companies operating in the
same industry that are either publicly traded or, if privately-owned, have been sold recently. A
common problem for privately owned businesses is a lack of publicly available comparable data.
The Asset & Other methods consist of valuation methods that cannot be classified into one of the
previously discussed approaches. The methods utilized in the Other Approach are Capitalization
of Excess Earnings and Multiple of Discretionary Earnings. Commonly referred to as the
“formula method,” the Capitalization of Excess Earnings method determines the value of
tangible and intangible assets separately and combines these component values for an indication
of total entity value. Under the Multiple of Discretionary Earnings method, the entity is valued
based on a multiple of “discretionary earnings,” i.e., earnings available to the owner (who is also
a manager). Both of these methods are normally used to value small businesses and professional
practices.
MULTIPLE OF DISCRETIONARY EARNINGS
The multiple of discretionary earnings method is best suited to businesses where the salary and
perquisites of an owner represent a significant portion of the total benefits generated by the
business and/or the business is typically run by an owner/manager. Discretionary earnings is
equal to the Company's earnings before: income taxes, non-operating income and expenses,
non-recurring income and expenses, depreciation and amortization, interest income or expense,
and owners' total compensation for services that could be provided by an owner/manager.
Buyers and sellers of very small closely held businesses tend to think in terms of income to
replace their previous paycheck or income to support their family. They look at the total
discretionary earnings to see if it is sufficient to pay all the operating expenses of the business,
carry the debt structure necessary to buy and/or operate the business, and provide an adequate
wage.
12. REPRESENTATIONS
The following factors guided our work during this engagement:
The analyses, opinions, and conclusions of value included in this report are subject to the
assumptions and limiting conditions specified in this report and they are SOLO Sale’s
personal analyses, opinions, and conclusion of value.
The economic and industry data included in this report were obtained from sources that
we believed to be reliable. We have not performed any corroborating procedures to
substantiate that data.
This engagement was performed in accordance with the American Institute of Certified
Public Accountants Statement on Standards for Valuation Services.
We have previously identified the parties for whom this information and report have been
prepared. This valuation report is not intended to be, and should not be, used by anyone
other than those parties.
1-800-531-2591
13. CONCLUSIONS OF VALUE
Based on our analysis as described within this valuation report, the estimate of value of 100%
of ABC Company as of 1/3/2013 was $2,875,491. This valuation does not include cash or
receivables in the company and it does not include debt obligations by the company. If used in
the sale of the Company, the valuation assumes an Asset Sale of a debt free business and is not
inclusive of cash or receivables held by this company. This conclusion is subject to the Statement
of Assumptions and Limiting Conditions and to the Representations, both presented earlier in
this report.
This valuation engagement was conducted in accordance with the Statement on Standards for
valuation Services (SSVS). The estimate of value that results from a valuation engagement is
expressed as a conclusion of value.
Disclaimer: The Summary Valuation is designed to serve as an indication of value to the
party requesting the valuation. For purposes of defending a valuation with other parties and
their Advisors an Intermediate or Comprehensive Valuation is typically required.