Comprehensive Business Valuation in Utah. Get Accurate Results

There are a wide variety of situations in which a business estimation is necessary, not the least of which is the sale or purchase of a company. Valuations are required to assess the fair distribution of a company's assets in the event of a death, disability, natural disaster, or divorce, following the criteria outlined in legal documents.

Company valuations are frequently required when donating shares to charity, settling disputes with the Internal Revenue Service or other shareholders, or transitioning from a C-corporation to an S-corporation. Obtaining a business appraisal may be necessary to comply with the terms of a buy-sell agreement, partnership agreement, or shareholder agreement.

In addition, business owners will often do a valuation before applying for a Small Business Administration (SBA) loan or raising strategic capital. The establishment of an Employee Stock Ownership Plan (ESOP) would call for initial and annual stock valuations.

Additionally, 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. If you seek business valuation services in Utah, Arrowfish can see through to ensure you receive an accurate value of your business. You just need to contact our team via the contact page or the form given below.

You need to have the following when getting your business evaluated:

• Past five years' balance sheets, tax returns, and P&L statements
• Interim P&L statements and the current-year balance sheets
• A copy of forecasts or projects, if any

Information describing the company's services and/or goods, information on the company's liabilities, a list of significant assets, and any reports from other professionals, if any, are also sometimes required. So for an expert business valuation in Utah, our team would be ready to help you, starting with a free consultation to discuss your requirements or situation and how we come into the picture.

There are 3 main business estimation approaches:

• Asset-Based Approach
• Earnings Approach
• Market Value Approach

Asset-Based Approach

The asset-based approach to business estimation is based on the value of the company's assets. This approach does not consider the company's earnings, cash flow, or any other intangible factors. To calculate the value of a company using the asset-based approach, you first need to determine the fair market value of all of the company's assets. This includes things like real estate, equipment, inventory, and accounts receivable. Once you have the fair market value of all assets, you subtract any liabilities from that number to get the net asset value.

This approach is often used by businesses that are in industries with high levels of tangible assets, such as manufacturing or construction. It can also be used when a company is not profitable but has a lot of valuable assets.

Earnings Approach

The earnings approach is the most common method used to value a business. It estimates the value of a company by looking at its past and projected future earnings. This approach is often used when valuing companies that are publicly traded, because public companies must disclose their financial information. To calculate the value of a company using the earnings approach, you need to estimate its future earnings and then discount those earnings back to present value. The discount rate you use should reflect the riskiness of the company’s cash flows.

Market Value Approach

The market value approach is the most common method used to value businesses. This approach looks at what a willing buyer would pay for the business, taking into account all relevant factors including the current market conditions, the company's financials, its competitive position, and any intangible assets such as its brand.

This approach can be used to value both public and private companies. For public companies, the market value can be easily calculated by looking at the current share price. For private companies, there are a number of different methods that can be used to estimate the market value, such as using comparable sales data or looking at earnings multiples. The main advantage of this approach is that it is relatively easy to calculate and understand.

Looking for a business valuation expert in Utah? Arrowfish can help you. With over a decade of experience in churning out valuations for different reasons, we can help you find the right worth of your business and make educated and informed decisions.

Most professional business appraisers will quote a price in one of two ways: a fixed rate, or an hourly rate. The cost of a business evaluation can range from $5,000 to over $50,000, based on criteria such as the firm’s size, the industry it operates in, and the purpose for which the valuation is being performed. But, again, cost for business appraisal services in Utah can vary and be beyond the range mentioned.

Finding out how much your company is worth is crucial, and like most entrepreneurs, you're also probably wondering how long the process will take. On average, a detailed evaluation usually takes a certified expert around two weeks to accomplish. So, if you're seeking a certified professional to conduct your business appraisal in Utah, you may contact our experts today for a free no-obligation consultation and get the process started.

Evaluations that don't factor in a test of reasonableness are more likely to be disputed and ultimately rejected. One of the knocks leveled at the valuation is the purchase price justification test, which looks at whether a bank would give a prospective buyer adequate equity financing at the proposed price. One may use this test to ascertain if the cash flow generated by the business is sufficient to cover the purchase debt, any applicable taxes and have an ROI for the investor. For a professional and accurate Salt Lake City business valuation, connect with our team for a free no-obligation consultation.

It doesn't always pay to go cheap/free. Simply responding to a few questions online will never ensure that you receive reliable information or a glimpse inside your company. On the other hand, if you pay for these services to an expert appraiser or a well-known organization, you are assured of receiving correct information that will assist your business in making better judgments and progressing ahead.

Yes.

There may be a range of outcomes when calculating a company's value over time. It is important to examine how much a ready, willing, and able buyer would pay when attempting to estimate a company's value. For this reason, a company's valuation can vary based on if it is being bought by a strategic buyer who will realize increased value, or through a prospective buyer who will not reap any synergies.

There are many different types of specialists involved in professional business evaluation. Only professional business appraisers with the appropriate training and experience can make legally enforceable estimates of a company's value. Obtaining the Accredited Senior Appraiser (ASA) or Certified Company Appraiser (CBA) designation is a huge deal in the company appraisal field. Thus, these experts need extensive training and experience compared to individuals who hold Accredited in Business Valuation (ABV) or Certified Valuation Analyst (CVA) credentials. If you seek a Utah business valuation, feel free to contact our support team.

A business estimation is an approximation of the company's value as of a specific date. The value of a firm could be influenced by several internal and external factors. An estimation is always appropriate as of the day it was completed. However, the value determined from an outdated assessment may no longer apply. Therefore, if you require a business appraisal in Salt Lake City or any other part of Utah, contact our team for a free no-obligation consultation where we try to understand your needs and come up with the best solution.