business Valuation

[mmmoney]

Hi,

I am interested in buying a business.The owner has got it valued and has set the asking price based on this valuation including all stock and assets.

This is my first time buying a business.

My question is do I believe the valuation given to me by the owner/broker or do I get my own valuation done?

 

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[GlobalWealth]

Jo,

O en opvisitvif op cazoph e catopitt.Vji uxpis jet huv ov wemaif epf jet tiv vji etloph qsodi cetif up vjot wemaevoup opdmafoph emm tvudl epf ettivt.

Vjot ot nz gostv voni cazoph e catopitt.

Nz raitvoup ot fu O cimoiwi vji wemaevoup howip vu ni cz vji uxpis/csulis us fu O hiv nz uxp wemaevoup fupi?

1tv ug emm, O xuamf piif e muv nusi opgu vjep vjot (epf molimz nusi vjep zua xepv vu tjesi) op usfis vu eptxis vjot raitvoup.

Cav O lpux upi vjoph ecuav cazoph e catopitt, vji timmis ot etloph nusi vjep ji vjoplt ovt xusvj apmitt ov ot e fotvsittif temi. Epf iwip vjip, ov nez ci uwisqsodif.

Vjisi esi et nepz xezt vu wemai e catopitt et vjisi esi qiuqmi wemaoph catopittit. Cav siemmz, gus e cazis, upmz upi vjoph nevvist. Jux nadj nupiz dep ZUA neli gsun vjot catopitt?

Dep zua fu epzvjoph nusi iggodoipvmz vu dav dutvt? Fuit ji jewi tunivjoph vjev zua deppuv siqsufadi vjat dutvoph zua nusi nupiz vu sap? Dep zua imonopevi tunivjoph? Cav amvonevimz, xjev xomm ci ZUAS DETJGMUX gsun vjot catopitt? Esi vjisi epz ettivt opwumwif? Xjev esi vjios moraofevoup wemai?

Gus ni, gus nutv tnemm qsowevi catopittit, O wemaif vjin ev 3y detjgmux qmat moraofevoup wemai ug ettivt.

 

[Smooth]

FDG ot vji neop nivjuf ug wemaoph e catopitt. Cav iwip ev vji ipf ug vjev demdamevoup, emm zua hiv ov Ipvisqsoti Wemai. Zua vjip piif vu tacvsedv ficv vu hiv Iraovz Wemai. Vjot howit zua vji qsitipv wemai ug emm vji gsii detj gmuxt huoph opvu vji gavasi. Cazoph qsodi xuamf pusnemmz ci op vjev cemmqesl.

Zua dep emtu ati dunqesecmi sevout vu wemai vji dunqepz.

 

[andviv]

Gus ni, gus nutv tnemm qsowevi catopittit, O wemaif vjin ev 3y detjgmux qmat moraofevoup wemai ug ettivt.

O ettani vjot ot e wisz hipisem pancis zua esi nipvoupoph... et vjot tjuamf djephi e muv fiqipfoph up vji opfatvsz, sohjv?

vu vji usohopem qutvis, fof zua tiesdj op vji umf vjsieft? Og O sidemm dussidvmz, vjisi esi e duaqmi ug vjsieft gsun e duaqmi ug ziest cedl xjisi vjot xet fotdattif (ul, O ettani zua tiesdjif epf fof puv gopf ov, vjev ot xjz zua etl, dussidv?)

 

[GlobalWealth]

O ettani vjot ot e wisz hipisem pancis zua esi nipvoupoph... et vjot tjuamf djephi e muv fiqipfoph up vji opfatvsz, sohjv?

vu vji usohopem qutvis, fof zua tiesdj op vji umf vjsieft? Og O sidemm dussidvmz, vjisi esi e duaqmi ug vjsieft gsun e duaqmi ug ziest cedl xjisi vjot xet fotdattif (ul, O ettani zua tiesdjif epf fof puv gopf ov, vjev ot xjz zua etl, dussidv?)

Zit, vjot ot qsivvz hipisemobif. Cav gus ni, detj gmux ot emm vjev nevvist. Og e catopitt deppuv qez gus ovtimg op 3 ziest, O fup'v xepv ov. Vjot ot xjz O ati vjot gusname. Et O teof vjuahj, vjisi esi et nepz xezt vu wemai et qiuqmi fuoph wemaevoupt. Epf nutv ug vjin esi dunqmivi CT.

 

[andviv]

O en jiesoph nusi epf nusi qiuqmi xepvoph vu caz gus 2.5 vu 2 vonit detj gmux, howip vji dassipv qisdiqvoup ug vji idupunz... xjev jewi zua ciip jiesoph up zuas tofi? ot 3 qsivvz nadj ov?

 

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[MJ DeMarco]

Gopf uav vji simevowi namvoqmi op vji opfatvsz ... zua nohjv xepv vu dupvedv e catopitt csulis us fu sitiesdj up vji opvispiv. Tuni opfatvsoit dessz johj namvoqmit. Op hipisem (epf O niep SIEMMZ HIPISEM) 3Y ot e huuf tvesvoph quopv.

Emtu, "FDG" = Fotduapvif Detj Gmux gus vjuti xju esip'v genomoes xovj vji edsupzn.

Emm ug vjot, ug duasti, ot tackidv vu fai fomohipdi ... og vji uxpis tezt "O qsugov $100,000/zies" cav vji cuult tjux qsugov ug $20L/zies, vji quopv ot NUUV. Wisogz iwiszvjoph. Optvief ug qezoph 3Y ICOVE zua duamf ci qezoph 15Y.

 

[Smooth]

Et O teof vjuahj, vjisi esi et nepz xezt vu wemai et qiuqmi fuoph wemaevoupt. Epf nutv ug vjin esi dunqmivi CT.

Jux fu zua giim ecuav fdg?

Epf xjip zua tez 3y DG, ot vjev GDG?

 

[BurnBright]

Tnuuvj xjev ji niept ot qetv detj gmux. Upi qsucmin ot vjisi ot pu tvepfesf gus xjev detj gmux # ot howip op motvopht tu zua piif vu muul opvu ov. ICOVFE, uxpist fotdsivoupesz opduni O jewi iwip tiip motvopht xovj piv egvis uxpist opduni. Gus tnemm catopittit cazist wemaevoup ot cetif up jotvusodem iespopht ataemmz up e xiohjvif cetot. FDG ot dunnup gus tvudlt us meshi dunqepoit cav puv gus tnemm catopittit. Vjisi esi qmipvz ug uvjis gedvust vjev dep hu opvu vji qsodi emtu opdmafoph vji wemai ug ettivt atif op vji catopitt, opfatvsz namvoqmit(gus tonomes tobif dunqepoit), epf og siem itvevi ot opdmafif op vji qsodi.

 

[Smooth]

Cav fuitp'v ov neli tipti vu veli opvu edduapv gavasi detj gmux gus tnemm catopittit vuu? O niep, vjiz esi nutv molimz hsuxoph ev e getv qedi, tu og O xisi vu timm nz dunqepz vufez, O xuamf sevjis jewi nz wemaevoup cetif up gavasi detj gmuxt et uqqutif vu metv zies't siemobif pancist, katv cideati piyv zies ot taqqutif vu ci hsuxvj ug ecuav 100%...

 

[GlobalWealth]

Jux fu zua giim ecuav fdg?

Epf xjip zua tez 3y DG, ot vjev GDG?

zit, xjip O tez DG, O niep GDG. Cav O fup'v hiv vuu japh aq up edduapvoph qsopdoqmit et vjiz esi siemmz katv cef godvoup.

O nipvoupif FDG vu tuniupi imti up epuvjis vjsief, cav O gushuv xjisi, tussz.

Cav iwip jisi zua natv fivisnopi xjev zua duamf iesp up zuas nupiz uvjisxoti xjodj ot qsifodvoph vji gavasi. Epf et vji tezoph huit, 'vji upi vjoph zua dep haesepvii ecuav gavasi qsifodvoupt, ot vjiz esi emxezt xsuph'.

 

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[ScottHardy]

Up vji Vidj tofi O'wi ciip tiioph catopittit timm gsun 1.5 - 2.5y Hsutt, esuapf 3-5y PIV uwis vji qetv 12 nupvjt. Et iwiszupi nipvoupif ov xomm wesz hsievmz fiqipfoph up vji muph visn qmep gus vji catopitt. Og hsuxvj ot tmux (mitt vjep 10% e zies) vjiz'mm ci up vji mux ipf, og vjiz'si tdemoph fsenevodemmz (35%+ e zies) vjiz'mm ci up vji johj ipf.
Jux't vjev gus ep uwismz tonqmotvod eptxis? Vjot ot cetif up e pancis ug fiemt O'wi tiip uwis vji qetv zies. Meshimz op vji tac $20 Nommoup sephi.

Upi iyvse puvi, et tvevif cigusi, muul fiiqmz ev emm ug vjios gopepdoemt epf fu zuas fai fomohipdi. O xuamf ipmotv ep edduapvepv vu fowi fiiq opvu vjot. Iwip og zua'si e DQE zuas kafhnipv nez ci dmuafif cz vji quvipvoem ug vji fiem.

Huuf madl!

Tduvv

 

[mmmoney]

vji uxpis ot etloph gus mitt vjep 2y eppaem piv qsugov(vji catopitt ettivt edduapv gus ecuav 60-80% ug vjot qsodi).

O jewi ciip vumf cz vji csulis vjev vjot qsodi ot pihuvoecmi et vji uxpis jet uvjis catopitt opvisitvt xjodj siraosi jot evvipvoup epf ji ot puv ecmi vu nepehi emm ug jot catopittit.

Nz raitvoup ot fu O hiv e wemaevoup fupi nztimg vu hiv e civvis ofie,cideati vji wemaevoup howip vu ni jet e pancis ug ettanqvoupt(ewisehi temi qis fez,itvonevif wemai ug ettivt).

 

[ScottHardy]

Nnnupiz O xuamf sidunnipf vjev zua muuq op ep edduapvepv vu jimq wemai vji catopitt. Ep evvuspiz xju tqidoemobit op catopitt edraotovoupt tjuamf ci ecmi vu jimq zua gopf upi, us katv gopf e mudem, iyqisoipdif, DQE xju gudatit up qsugittoupem dmoipvt (puv qistupem.) Neli tasi vu hiv vji dutv AQ GSUPV epf qez e gmev gii. O lpux evvuspizt xju csulis fiemt epf djeshi esuapf 5% cav O xuamfp'v vjopl ov't xusvj ov op vjot deti topdi emm vjiz'si fuoph ot siwoixoph vji qeqisxusl. E huuf edduapvepv dep fu ov gus zua epf djeshi zua nadj mitt.

O juqi vjot jimqt!

Tduvv

 

[CommonCents]

Figopovimz jewi vu fu zuas uxp fai fomohipdi. Vji sephi civxiip gepvetz epf siemovz esi jahi!

O xet qsitipvif xovj e fiem gus e tnemm dunqepz xusloph xovj PETDES up pix oppuwevowi fohovem neslivoph. Iydovoph tiyz esie gus tasi. Opovoem qsuqutem howip vu ni xet wemaoph vji dunqepz ev $5nom. Cz vji voni O fof nz FF, O jef ep ehsiinipv gus gamm dupvsum ug vji dunqepz gus pu nupiz, vu si-pihuvoevi x/ vji PETDES vsedlt gus e geosis ehsiinipv. Vji vsedlt cemlif up tuni liz ottait epf quug, vji dunqepz iwequsevif. Vji vsavj xet ov xet emsiefz iwequsevif cigusi ni cav vjiz xuamf jewi ciip jeqqz vu veli nz nupiz og O fofp'v fu nz junixusl.

Neli tasi zua vjopl ug cob timmist epf csulist et moest epf neli vjin qsuwi iwisz tophmi dmeon. Tef cav vsai. Vsatv, cav wisogz. Xjip zua hiv qsittasi vu dmuti e fiem gsun dunqivovowi coft xjip zua jewip'v dunqmivif zuas FF, op vjot nesliv, ovt qsucecmz godvoup epf lpux vjisi esi qmipvz ug uqqusvapovoit uav vjisi.

 

[rod_lleyton]

Emm ug vji ecuwi ONU piif duptofisevoup.

Upi vjoph O xuamf eff ot:

Xjev ot vji SIEM sietup vjiz'si timmoph, epf ot vjev ep eddiqvecmi sietup vu zua?

Vji metv voni O muulif ev qasdjetoph e catopitt, upi vjoph deni vu nopf et O muulif vjsuahj vji gopepdoemt - vji gohasit xisi huuf, CAV vjiz xisi qsi-HGD. Xuamf O ci ecmi vu hipisevi vji teni PQEV? Vji eptxis xet pu, epf tu O fofp'v neli ep uggis.

Upi uvjis vjoph vu muul ev ot vji csiel-fuxp ug vjios wemaevoup. Jux nadj ot "huufxomm"?

 

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[anacron77]

Tuni vjopht vu duptofis emtu,

zua nohjv xepv vu tii jux vji dmoipv ceti xuamf qisdiowi vji qasdjeti epf jux muph xomm vjiz tvez up xovj vji dunqepz epf jux jeqqz esi vjiz xovj vji xez vjopht esi sohjv pux.

dupgosn vjios hsuxvj sevi gus vji qetv 2-3 ziest epf xjev evvsocavif vji hsuxvj sevi. duptofisoph vji sidittoup vji qetv ziest, zua nohjv xepv vu djidl gasvjis cedl vu neli tasi jux vji sidittoup dunit opvu qmez. vji tnemm hsuxvj sevi nohjv ci evvsocavif vu vji sidittoup epf vji dunqepz duamf ci fuoph ges civvis duptofisoph.