Our Unique Approach to Business Valuations
The #1 reason a business is not able to be sold, is because it has been priced too high. But that’s not to say we suggest underpricing the business either. For this reason, Murphy Business Sales of Ohio has always known that before a final decision is made to sell a business, it is critical to understand what the value of that business is on the open market. This is also a very important step in Murphy’s Proven Process of selling businesses. Most of our valuation projects are initiated from a business on its way to a potential sale, to determine the MPSP (Most Probable Selling Price). There are a number of other reasons someone may wish to have their business valued including:
- Divorce/Prenuptial Agreements
- Litigation
- Partnership Agreements
- Life Insurance
- Exit Strategy & Retirement Planning
Murphy Business Sales of Ohio offers several valuation options that are designed to fit a variety of goals. This includes relationships with several well-established accounting professionals that carry various accreditations such as:
- CPA – Accredited in Business Valuation (ABV)
- CM&AA: Certified Merger & Acquisition Advisor
- CMEA: Certified Machinery & Equipment Appraiser
- MCBC: Master Certified Business Counselor
- CEPA: Certified Exit Planning Advisor
Our Business Valuation & Appraisal Services
Businesses come in many different shapes and sizes with owners who have unique needs and goals that lead them to have their business valued. The following is a brief overview of the valuation and appraisal services offered by Murphy Business Sales of Ohio. As part of our process we discuss the various options with the business owner and together determine the best path toward the owner’s goal.
Broker’s Opinion of Value. A Broker’s Opinion of Value (BOV) Report is used in pricing smaller businesses, especially in commonly bought and sold industries such as restaurants and retail. A BOV report can be used by buyers, sellers, and business brokers to determine reasonable selling prices for small companies.
Business Valuation Report. A Business Valuation Report is an accredited formal summary report primarily used in non-litigation situations. This abbreviated report is typically what is needed for determining the selling price of a business or assisting with buy/sell agreements between partners.
Business Appraisal Report. A Business Appraisal Report is a high-level report designed for use as support for litigation and review by third parties such as the IRS. The report explains in detail what was done and how the value was derived.
If you need to conduct a business valuation, whether selling a business or for another reason, please contact Murphy Business Sales of Ohio at (330) 650-9000 or contact us here.
