business valuations
what’s it worth?
It depends on who’s asking – and for what purpose. At Synergy, we evaluate your business from a buyer’s perspective. We’ll make a diligent effort to understand both you and your business. We’ll help you establish realistic expectations – the foundation of which is always cash flow.
Cash flow is king, and buyers will most commonly view your business in terms of a pre-tax multiple. Synergy Business Services will evaluate your financial statements against a database of comparable businesses in your industry. The result is a market-based, realistic multiple of earnings… the very process a prospective buyer would employ. To calculate an accurate valuation, your Synergy advisor may ask for any of the following:
- three years of income statements & balance sheets (& YTD)
- three years of corporate tax returns
- a fair market value of FF&E
- a value of existing inventory at cost
- a list of trade names, patents, or intellectual property of value
- a list of other intangible assets of value (contracts, domains, etc.)