Big or Small, Your Brand Needs Business Valuation

Business valuation service : Are you a company owner in New Jersey who has no idea how much your brand is worth? Well, sure you sell a few products over the year, and maybe even have an idea of how popular your brand is. But you have no clue how valuable your brand is in the retail market. 

Well, this can be problematic in so many levels! If you do not know the value of your brand you won’t know how much profit, you’ll make and so on. Not to mention, if you even think of selling your business, you cannot make a strategic exit planning without knowing your brand’s market value.  

Therefore, you must go for business valuation services New Jersey. Now, you might wonder what business valuation is and why is it so needful for your brand? Well, we at ThomasRoss Financial Group will tell you. We offer customized business valuation service to clients and today, we are here to answer all your questions. 

So, Let’s Begin

Explaining Business Valuation 

Business valuation is very important for any business succession planning or estate planning. Now, your business may be the most important asset for you. So, naturally, if you wish to see it grow, you need to have an insight on the taxable value of your brand. However, if you just assume and use an incorrect value, it can cause you to mess up tax-saving tips. For example, if you have an inflated value it can result in you investing time and money, and all for nought. 

Therefore, you must have the accurate market value of your brand, and this is where business valuation can aid you out. The business valuation takes into consideration several aspects before finding the accurate value of your brand. 

In short, opting for business valuation services New Jersey will ensure your brand optimal use of resources and finance. Moreover, there are plenty of other reasons to undergo business valuation. 

Let’s Review These

1 . Business Valuation Helps in Succession Planning 

Sometime in life, you might plan to hand down your business to someone else and retire. Now, this can be either a family member or a third-party buyer. When it is a family member, most of you might charge a negligible amount and hand down the brand with confidence. 

However, when you are planning to sell your brand to a third-party buyer you need to invest in business valuation services. This is because, unless and until you find the actual value of your brand you do not know if you’re charging the right market price for your brand.  

Additionally, your buyer might want to check the market value of your brand to determine the amount to be paid.

2 . Mergers, Sales and Acquisitions

Brands need a business valuation when they suddenly acquire another company and is a target for acquisition. This valuation helps in reorganizing the capital structure, filing for bankruptcy or splitting up the company as per its needs.

Now, for mergers, both the company in charge as well as the acquired company needs to go for valuation, while in acquisition any of the companies can opt for valuation. Anyhow, these valuations often pinpoint challenges that require the valuation expert to calculate cash needed for payments.

Therefore, in such cases, it is best that you opt for business valuation services New Jersey.

3 . Buy/Sell Agreements 

Let’s assume that your brand in New Jersey has an LLC or partnership; if it does it is important that you have a buy/sell partnership between participants to avoid future problems. Now, the starting point of this agreement is based on a value, which is agreed mutually. This is where your business valuation service can help you in determining the value. 

4 . Partnership and Shareholder Buyout/ Disputes

Often in businesses there can dispute that arises due to several circumstances. Some of these are disagreement with dissolution or merger or disputes within owners and more. Other times disputes arise when certain stats allow unanimous owners to change, restructure or dissolve businesses without consent.

At that time, if you have a business evaluation done, it can aid in resolving the dispute as part of the settlement. So, in case there is a chance of your brand facing such disputes opt for a business valuation services New Jersey

5 . Business Valuation for Funding 

Suppose you need good funding from banks and investors, at that time if you undergo business valuation, you can get a better value for funding. 

Why? Well, a business evaluation will show the investors the actual worth of your brand. Additionally, it will also predict how profitable your brand will be in future. Therefore, your investors or bank will feel motivated to invest in your brand. 

On that note, now that you’re aware of the many perks of business valuation ensure to get it done sooner. For best results, you can contact us at ThomasRoss Financial Group and let our analysts take care of your issue.

5 Major Types of Business Valuation Methods

Business Valuation Methods

There are many kinds of methods out there when it comes to business valuation. Some methods will work for you and some may not. However, it’s still important to know about all these different types of methods.

If you’re looking for business valuation services New Jersey, then look no further. ThomasRoss Financial Group is here at your service.

That being said, let’s first understand why business valuation is important.

Why is Business Valuation Essential?

When in the world of corporate and business, one always needs to prepare for all different circumstances and scenarios as the market is extremely unpredictable. In case your company or business is being sold, liquidated, or bought, you need to be aware of the current market value and need to be able to provide the documents and statements that prove the actual worth of your business. Hence why, you need business valuation. If you need business valuation services New Jersey, then you’ve come to the right place. At ThomasRoss Financial Group, you can avail services from extremely qualified business and financial analysts.

A valuation professional usually uses the market analysis, cash flow model, and financial statements to determine the value of a company or a business. If you’re selling your company, then you need to ensure that you get your company valued as a strategic buyer will definitely want to see the worth of your company before they invest their money. However, stay prepared for the fact that they may wish to perform valuation themselves and compare the result with the value you provided them.

Now that you understand the importance of getting your company valued, let’s move on to understanding the 7 business valuation methods:

1. Market Value Business Valuation Method

The market value business valuation method is one of the most effective approaches to business valuation. With the help of this, one can most likely get a near accurate value of a company. In this approach, our business analysts compare your business to businesses that have already been sold and once belonged in your industry. Needless to say, this approach only works after our financial analysts collect enough market data of your competitors. However, if you choose to do this on your own, then be aware that this will prove to be extremely difficult. Hence why, it’s recommended that you hire professionals for the task of valuing your company, as it’s highly unlikely that you’d have a public database.

This valuation method is a great way to find out the actual worth and value of your company. However, it’s always good sense to try other options when dealing with anything. It never hurts to get a second opinion.

2. Asset-based Business Valuation Methods

Now, we’re going to discuss the asset-based business valuations methods. You probably gathered from the name, these methods revolve around the business’s total net asset value of your company, without the value of its total liabilities, as per your balance sheet.

There are two main ways through which one can approach the asset-based business valuation methods:

Going Concern

Organizations that plan to stay in business and not be liquidated, and have their assets sold off immediately, should opt for the going-concern approach for an asset-based business valuation. This method considers the assets of a company without the liabilities, or business’s current total equity.

Liquidation Value

Whereas, the liquidation value asset-based approach to valuation is opted for only when it’s assumed that the company no longer is in business and its assets are to be liquidated. If the company is finished and its assets are to be sold, only then is the net value determined. However, the important thing to note here is that the worth of the assets is most likely going to be quite low, since the liquidations value typically is a lot lesser than the current market.

3. ROI-based Business Valuation Method

The ROI-based business valuation method is very useful as it can be used in many ways to determine the profit value of your company. For example, you can calculate the capital equipment investment, performance of your pricing policy, inventory investment, etc.

Here, we have mentioned some other methods through which you ROI to determine the value of your business:

. One can calculate the rate of earnings on stock equity and proprietary equity by dividing the net income from the total capital plus reserves.

. One can devise the rate of earnings on invested capital by dividing the net income and income taxes from the proprietary fixed and equity liabilities.

. One can calculate the rate of earnings of total capital employed by dividing taxes, interest, net income, from the total liabilities.

4. Discounted Cash Flow (DCF)-Based Business Valuation Method

Discounted cash flow-based business valuation method is also called the income approach. It determines the worth of a company by considering its projected cash flow. The cash flow, discounted or not, needs to be adjusted its current value.

5. Capitalization of Earnings-Based Business Valuation Method

Capitalization of earnings-based business valuation method measures calculates a company’s future profitability by considering its expected value, annual ROI, cash flow.

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