Q:  What are the benefits of using a business broker to sell my business?

Meridian Business Advisors will protect the identity of the company and advertise the company without revealing its identity. Selling a business is time-consuming for an owner, and with a business broker, the owner can maintain a focus on running the business when a Meridian broker is working on the sale. We have the tools and resources to reach the largest possible base of buyers and investors. We work closely with our clients through all stages from pre-listing to closing the deal, and transitioning ownership. 

Q: Why should I work with a Certified Business Intermediary (CBI)?

A CBI’s experience and knowledge of current marketplace conditions is critically important for anyone looking to sell a business. If you are considering the sale of your business, you need every advantage, primarily preparation, experience and knowledge. Contacat Meridian Business Advisors to learn more.

Q: How can I maximize the fair market value of my business’ intangible assets?

To maximize the fair market value of your business, it’s vital that you capitalize on intangible assets.  Demonstrating that your company’s success is reliant on your capable, well-trained employees – not just you – will pay off at the time of sale. Documented records and plans give a buyer greater comfort that he or she will be able to emulate your successful growth, will help your buyer obtain financing, and provide accounting of assets and inventory.  Plus, we will need solid records for your business valuation and for the closing attorneys. It is also important to ensure the physical location of the business is attractive and well organized.  Meridian Business Advisors can work with you to prepare your business for sale to maximize it's value. Contact our office today to schedule a consultation. 

Q: What Is Balance Sheet Value?

There are several balance sheet valuation methods, including adjusted book value, book value and liquidation value. The adjusted book value is determined by revising the asset’s book value to reflect the cost it would take to replace the assets in their current condition. This method requires the total values to be offset against the sum of the liabilities. The book value considers the figures from the company’s financial records, as depreciated at the time of the sale. The book value can pose some difficulties for sellers, particularly if the seller has depreciated the assets to gain prior tax advantages. The liquidation value is the amount that could be realized if all assets – equipment, furnishings and inventory – were sold separately. This value is typically much lower since it doesn’t consider a company’s intrinsic value. Meridian Business Advisors are Certified Business Valuators and will perform a comprehensive business valaution using a comprehensive and wholistic approach.

Q: What is the Income Approach to valuing a business?

The income approach takes into consideration the company’s level of earnings using a capitalization rate, discount rate or multiplier. Several income approach methods are frequently used. Each method requires a level of earnings and a conversion factor to translate the earnings into a company’s value. Selecting the proper level of earnings – after-tax, pretax, discretionary or cash flow – and matching it with the proper conversion factor – discount rate, cap rate or a multiplier – is critical to calculating a reasonable value. However, this approach does not calculate the value of intangible assets. 

Q: What is the Market Approach to valuing a business?

The market approach sets a value based on the values of other businesses that have been sold. Setting the market value involves researching the sale prices for similar businesses in a geographic area. In some cases, however, finding a company that is similar in many ways to your company may be difficult.  A business owner should never accept a computer-generated valuation or a one-size-fits-all approach when selling the business. Some brokers apply a multiplier of 3x to determine the value of all businesses in any industry, which is not an accurate representation of your business. Meridian Business Advisors are Certified Business Valuators and will perform a comprehensive business valaution using a comprehensive and wholistic approach.