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Business Evaluation
The MKL Team will meet with you to give you a Business Evaluation at your convenience.
Call: (855) 343-5544 ext 309
Or you may request a Business Evaluation online.
Unlike real estate valuations that are fairly straightforward due to the availability of information on comparable transactions, assessed values, etc., business valuations have many more variables and components to determine their value.
The five major components that influence the value of a business are:
- Financials
- Industry
- Outside influences
- Structure of the business
- Benchmarking
One of the responsibilities of a Business Broker is to help business owners who might be interested in selling their business come to a realistic valuation of their business by sales and trend of the business and researching similar industries and businesses and determining what the best sales “multiple” to owners net cash flow to sales price might be.
To determine the owners net cash flow, we look at how much income is being generated to the owner starting at the bottom line profit or loss of the business and then adding their personal W-2 payroll, bonuses, and add backs such as the following:
ADD BACK:
- Owners Salary
- Non-active Salary Expense
- Depreciation & Amortization
- Debt Service (loan payment)
- Income Tax
- Non-recurring capital expenditure
- Non-recurring expense
PERSONAL EXPENSES (not essential for business):
- Insurance – health/life/property
- Travel and Entertainment
- Automobile – payments/fuel/repairs/taxes/insurance
- Equipment Rental
- Donations
- Other (specify)
- Gross Sales not reported
The MKL Team (TMT) meets with the business owners and asks a multitude of questions and combines this with their experience and research designed to allow TMT to get to the answer of this one important question:
Is this business saleable; and if so, at what price?
Please download our Sellers Confidentiality Agreement that will protect any information you might be concerned with providing to The MKL Team (TMT) in their analysis of your business.
The MKL Team will meet with you to give you a Business Evaluation at your convenience.
Call: (855) 343-5544 ext 309
Or you may request a Business Evaluation online.
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