If you are thinking about buying a business, buying out your partner or selling off your business, it is always a good idea to get an independent review and estimate of potential market value of the business. We can provide this service for you. Hospitality and Retail business are generally the type of business where cash flow is the major component of the value of the business. Determining this value is not a simple process. Our Specialized sales teams have qualified and experienced investigative agents with the proper training and skills to provide you with a more in-depth review of the business. We complete an in-depth financial review, site inspection, site survey, customer/traffic sales investigation and provide you with an estimate of potential Sale Price Portfolio. We dig deeper than just looking at tax returns, sales tax returns and lists of equipment.
When compiling the data and preparing our estimate of a potential sale price we understand in most cases the new buyers will not operate the business in the same manner as the sellers nor will they pay their taxes in the same way. For this reason our analysis only takes into consideration the actual gross sales evidenced by the actual sales taxes paid and the fixed direct operating monthly expenses needed to operate the business. Discretionary expenses, cleaning services, advertising and marketing expenses are not included. We also review the current lease agreement, same type build out of like property cost and the replacement costs of the furniture, fixtures and equipment. We do not include any value for "goodwill" in our analysis. In our opinion "goodwill" is a perceived value based on the emotional attachment to the location by the buyers, sellers and its' customers. We regard "goodwill" as a "how bad do I want to Buy it" or "how bad do I want to Sell it" price modifier. Only the Buyer and/or Seller can make that value determination. We do not include accounts receivable and product inventory evaluations in this type of valuation.
Estimate of Suggested Listing Price Services
When we prepare and provide an Estimated Listing Price, all or any combination of the following investigative reviews are conducted for you:
Financials Review is a complete review of the business current cash flow and sales receipts for the previous 12 twelve months of operation. This document review includes but is not limited to cash register tapes, POS sales records, employee sales records, daily reports and Sales Tax reports.
Tenant Lease Review is a complete review of the current lease and options to renew terminate and or purchase.
Site Inspection is conducted off business hours where we have the ability to inspect the premises without employee or customer observation. This inspection includes but is not limited to the furniture, fixtures, equipment, assets and the general physical condition of the business. We also take photographs and do an equipment inventory.
Site Surveillance is conducted covertly and without warning. Dependent on the depth of the evaluation, we will send in undercover secret shoppers to evaluate business operation and customer flow.
Accounts Receivable Review is a very in depth and time consuming evaluation. Accounts receivables reviews should be performed by a forensic accountant if the sole value of a business or asset is based on the net value of the accounts receivable. We work with many CPA's and Forensic Accountants and have them available for you if the need should arise. We can provide a general value of accounts receivables based on the type of accounts receivable, cash flow provided by the accounts receivable and the longevity of the accounts receivable. If your company or the company you are buying has contracts for service, we can review those contracts and provide a general estimated market value for each individual contract. We generally cannot guarantee validity of the contracts or the second party to the contacts.
Product Inventory Review can be a onetime written product inventory to establish the value of your product inventory prior to the closing. Usually this inventory is completed the night before the closing and after business hours. We also provide loss prevention inventory services where we conduct week/month long investigations to help you determine if you have an employee theft problem. Our special investigators will provide you with exceptional services and a plan to help you combat employee theft.
Sales Portfolio is our written report of the suggested listing price of your business and the supporting documentation. Depending on the scope of the report it may or may not include pictures and equipment inventories.
For more information or to have a Licensed Sales Agent contact you