Business Valuations

How to Determine the Value of Your Business

Anthony Wayne Business Exchange will analyze your financial, marketing, industry and operational data and transform your business into an organized financial picture, with emphasis on determining the fair market value. The valuation will be presented in commonly accepted and concise terms that all parties involved can readily understand and benefit from.

Financial statements are prepared utilizing general accounting principles, but they do not always reflect the true economic value of a company. In reviewing a company's financial statements, it is often necessary to include analytical adjustments that may include the following:

Pricing fixed assets at current market value - not historical book value

Adjusting book depreciation where it is not a true reflection of economic depreciation

Making inventory adjustments when necessary

Normalizing owner/executive compensation and fringe benefits

Reviewing non-recurring and non-cash expenses, along with non-transferable interest burden

These and other adjustments are made to the financial statements, providing an accurate understanding of the recast earnings, which play a major role in properly assessing the value of your company.

By understanding the various operational elements of your company, we are able to assess the relative impact of its opportunities and perceived risk. Elements which increase risk, decrease the value of the business, and conversely, elements that decrease risk, increase value. Upon finalizing this report, AWBE will meet with you to apply the valuation results to your specific objectives. Our goal is to provide you with the accurate information necessary to address your valuation needs.