The MicroValuation is a new, simple and affordable solution that provides sellers a fast and inexpensive way to determine the value of their business and for buyers to verify that value. In the past, the quest to simply value a small business included an expensive and lengthy process. The MicroValuation now fills the simplicity void in the small, mainstreet business valuation marketplace.
A MicroValuation establishes a company's worth at an extremely low cost. Gone are the more costly days of paying for a more extensive valuation when all you really need is to establish the selling price of your business.
A MicroValuation can be completed in a couple days from receipt of the required information from the client. That is lightning quick for the industry. In some cases they can be completed in 24 hours ... that is unparalleled in the industry!
In Webster’s “Value” is defined as "...the amount of money that something is worth, the price or cost of something, something that can be bought for a low fair price". At $599, a MicroValuation meets this definition.
The MicroValuation utilizes three internationally recognized sources. Two of these sources, DealStats and BIZCOMPS, are databases that list comparably sold businesses just as real estate agents use comparably sold homes to value houses. The third source, the Business Reference Guide, provides business transaction professionals with up-to-date pricing information on nearly 600 types of businesses. These sources provide imperical data, not just some broker or business owner's opinion. The accuracy provided is key.
Once all of these sources, including client provided data, are analyzed, a report is generated that provides a limited narrative putting forth a range of values and a final Calculation of Value. Included in the narrative is all supporting data used to reach these values. The MicroValuation report helps the seller to accurately and confidently price the business for market. And, at no extra cost, two additional tables are provided to help with “what if” strategies.
MicroValuations are prepared for small businesses with revenue of $3 Million and under.
With this report, a business Owner can ascertain the range of values and a final averaged value of the business in order to determine if it's a good time to sell or transfer business ownership.
The Buyer has similar but different needs. With the final value, the Buyer can confirm whether or not the asking price of a business is reasonable and therefore make an offer, or not, based on concrete, verifiable information.
As beneficial as it is, the MicroValuation is limited in its use. The business Owner and potential Buyer should know when it can and cannot be used.
A MicroValuation, as defined here, is NOT a USPAP (Uniform Standard of Professional Appraisal Practice) Valuation. A USPAP Valuation is required for IRS gift & estate tax purposes, the IRS, bankruptcy and court cases, divorce cases or for lending purposes and is much more extensive and costly.
Additionally, for larger businesses or companies that are more complex, a MicroValuation may not suffice. A USPAP Valuation may take anywhere from 30 to 200 hours (or even more) to develop and cost $3,000 to $50,000 plus.
Should you need a more robust Valuation, visit National Business Appraisers for more information.
Over the span of a 30 plus year career, Lance Schmidt, President of National Business Appraisers, Inc., has both sold and assisted in the sale of hundreds of businesses and in valuing thousands more. He is a CVA-Certified Valuation Analyst with NACVA (the National Association of Certified Valuators and Analysts) and provides Business Valuations that comply not only with NACVA standards but with the Standards of USPAP (Uniform Standards of Appraisal Practice) of the American Society of Appraisers (ASA).
Mr. Schmidt is most proud of what he has created for small business owners that need to know the value of their business but are not able or interested in spending what used to be thousands of dollars to find this value. The MicroValuation is an affordable solution to fit this need.
If you need a MicroValuation for your small business or are interested in placing an offer on a business and want to know you are paying a fair price, Mr. Schmidt is happy to help or to answer any questions you may have. Contact him today.