Comprehensive Business Valuation in San Antonio. Get Accurate Results

There are various circumstances where a professional business evaluation is necessary for companies. One of the most common reasons is when a business is being bought or sold. In these situations, a proper valuation is required to determine a fair distribution of assets and establish an agreed-upon selling price. Additionally, business valuations may be necessary for legal contexts, such as when dividing assets in the event of death, disability, natural disaster, or divorce.

Another frequent reason for a business evaluation is to ensure compliance with legal agreements. This may include settling disputes with the Internal Revenue Service or other shareholders, or when transitioning from a C-corporation to an S-corporation. Furthermore, businesses may require an evaluation to comply with the terms of a buy-sell agreement, partnership agreement, or shareholder agreement.

Business owners may also opt for a valuation before applying for a Small Business Administration (SBA) loan or raising strategic capital. Additionally, the establishment of an Employee Stock Ownership Plan (ESOP) would necessitate initial and annual stock valuations. Furthermore, a formal business appraisal, in conjunction with marketability research, can assist a business owner in establishing a firm grasp on the company’s true worth in the current market. By understanding the true worth of a business, a business owner can make more informed decisions about the future of their company, such as planning for growth, expansion, or diversification.

If you’re seeking a business evaluation, it’s always best to turn to the professional expertise of a reputable consultancy firm such as Arrowfish Consulting. We specialize in providing businesses with accurate evaluations to help them make informed decisions and reach their full potential. If you’re interested in learning more about our services, please don’t hesitate to contact our support team and they’ll be more than happy to assist you.

When getting your business assessed by a professional, it is important to gather the following information:

• Your past five years’ financial statements, including balance sheets, income statements, and tax returns.
• Up-to-date financial statements and balance sheets for the current year.
• Any projections or forecasts you may have for your business.
• Information about your company’s products or services.
• Details about any liabilities or significant assets your business has.

Reports from other professionals or experts, if any, that may pertain to your business. Having all of these materials readily available will ensure the evaluation process goes smoothly and quickly. If you have all these, just contact our San Antonio business valuation lawyer and book a free consultation to discuss your situation

When it comes to valuing a business, three main approaches are commonly used: the asset-based approach, the earnings approach, and the market value approach.

Asset-based approach

The asset-based approach is based on the value of the company’s assets. This method takes into account the fair market value of all of the company’s tangible assets, such as real estate, equipment, inventory, and accounts receivable. These values are then subtracted from any liabilities to determine the net asset value of the company. This method is often used in industries with high levels of tangible assets, such as manufacturing or construction, and can also be used when a company is not profitable but has a lot of valuable assets.

Income-based or earnings approach

The earnings approach is the most widely used method of valuing a business. Here, the business value determination happens through properly looking at and analyzing the past and projected future earnings. Both public and private company valuations are possible with this method. For public companies, the value is determined by estimating future earnings and then discounting them back to present value, considering the company’s riskiness level.

Market value approach

The market value approach is also a widely used method for business valuation. This method looks at what a willing buyer would pay for the business, taking into account all relevant factors such as market conditions, the company’s financials, its competitive position, and any intangible assets such as its brand. It’s relatively easy to calculate and understand compared to the other methods and can be used to value both public and private companies. For public companies, the market value is simply the current share price. For private companies, the market value can be determined using comparable sales data or by looking at earnings multiples.

When it comes to business valuation, there is no one “right” way to do it as the appropriate method will depend on the specific circumstances of the company and the purpose of the valuation. However, regardless of the method used, it’s important to have accurate and detailed financial records and information about the company to ensure that the valuation is as accurate as possible. Our San Antonio business valuation attorney can cater to all your requirements for an evaluation, no matter the reason.

When it comes to determining the cost of a business evaluation, it’s important to remember that every situation is unique. Factors such as the size of your company, the industry it operates in, and the specific purpose of the valuation can all impact the overall cost. However, it’s common for professional business appraisers to offer a fixed rate or hourly rate for their services. The range for the cost of a business evaluation can vary greatly, anywhere from $5,000 to $50,000 or more, depending on the complexity of the assessment and the specific needs of the business owner. It’s important to note that in San Antonio, the cost of business appraisal services may vary.

Determining the value of your business is essential, and like many business owners, you likely want to know how long the process will take. Typically, a thorough valuation takes around two weeks for a qualified professional to complete. So, if you’re looking for a business valuation attorney in San Antonio Texas, reach out to our team today for a complimentary consultation and start the process.

A thorough evaluation includes a test of reasonableness to ensure accuracy and avoid disputes. One way to assess the validity of an evaluation is through the purchase price justification test, which examines whether the proposed price aligns with the business’s ability to generate sufficient cash flow to cover purchase debt, and taxes, and provide a return on investment for the buyer.

Investing in a professional evaluation from an expert appraiser or reputable organization ensures that you receive accurate, reliable information about your business, which can guide critical decision-making and drive progress. Skimping on the cost by using free online valuations may not provide the same level of detail or insight. Answering a few online questions can only give you a surface-level understanding of your company and doesn’t ensure you get the accurate and reliable information you need.

Yes. A business’s value can fluctuate and vary depending on the buyer’s perspective and potential to realize synergies. It’s important to consider the price a ready, willing, and able buyer would be willing to pay when determining a company’s value.

Look for professionals with specialized training and experience. Accreditation such as the Accredited Senior Appraiser (ASA) or Certified Company Appraiser (CBA) indicates that the individual has a high level of expertise in the field, and may have more extensive training and experience than those with an Accredited in Business Valuation (ABV) or Certified Valuation Analyst (CVA) credential. So, if you need to hire a business valuation lawyer in San Antonio Texas, our team of experts, having all the above credentials, will be there by your side during the process.

A business’s value can change due to internal and external factors, so a valuation is only accurate as of the date it was completed. An older evaluation may not reflect the current state of the company and therefore should not be relied upon as a current estimation. It’s important to consider the date of estimation in relation to any decision-making that may depend on it.