advisor presentation (print version)
TRANSCRIPT
What your business is Worth…and why it matters
Brandon Hall, CVA | BGH Valuation Services, LLC3580 Woodside Dr • Monticello, MN, [email protected] • 763-898-8653 • www.bgh-valuation.com
“-Ben Franklin
An investment in knowledge pays the best interest.
“
Only 2% of small business owners know their business valuation
98%Don’t Know
ExpensiveTraditionally, can cost > $10k
Time ConsumingTraditionally, can take > 4 weeks
ComplicatedIntensive process
for already busy owners
Not NowOwners wait until an event
The Roadblocks
When is the right time to know?
Any time.
HOW TO GROW
HOW TO RESTRUCTURE
WHEN TO SELL
WorthDeeper understanding
of your largest asset
Plan Your FutureKnow the facts for a more
accurate retirement or estate plan
ProtectionEnsure you have the right
amounts of insurance
Make Better DecisionsGuided by facts
Know Your PotentialUnderstand the ways you
can increase the value of your business
Get the Big Picture
A business valuation can put you ahead
Harnessing big data for the small business owner
Our proprietary engine analyzes data from 25 data sources to provide you a streamlined, reliable, sophisticated and accurate business valuation.
The Complexity Stays Where it Should… Behind the Scenes
Equity Value (latest valuation)
$14,769,809Asset Sale Value
$13,656,414Liquidation Value
$535,619Enterprise Value
$14,759,552
The details you need
This fair market value conclusion is the value of the company available to it’s owners or shareholders and incorporates of the assets included in the “asset value” plus the firm’s liquid financial assets (cash, A/R, deposits, etc.) and minusit’s liabilities (ST and LT).
This common transaction-oriented fair market value conclusion includes the firm’s inventory, furniture, fixtures and equipment, and all intangible assets ranging from customer base to goodwill.
This fair market value estimate is equal to the “total value of the firm” or the value of the firm’s equity plus its long term debt, e.g. it reflects the value of the entire capital structure (equity and debt holders) or “enterprise.”
The liquidation value conclusion is based on the key assumption of insolvency and the immediate sale of all assets (on or off the balance sheet) at or near “fire sale” level coupled with the nearly simultaneous retirement of all liabilities. This figure does not include accounts receivable.
How You’re DoingComparisons to other companies in your industry in 13 key areas
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.44Below Industry Average
Fixed Assets Turnover
119%Above Industry Average
Return On Equity (ROE)
170%Below Industry Average
Debt-to-Equity
18%Below Industry Average
Cash-to-Debt
31Above Industry Average
Receivables (Conversion)
84Above Industry Average
Interest Coverage
8%Above Industry Average
Income-to-Revenue
220Below Industry Average
Inventory Turnover
Key Performance Indicators
INDUSTRY AVERAGE
Let us generate a business valuation to give you the facts you need to make sound financial decisions.
Brandon Hall, CVABGH Valuation Services, LLC“Turning a Reactive Task into a
Proactive Strategy”
3580 Woodside DrMonticello, MN 55362
BGH Valuation Services, LLC is a business valuation and appraisal firm that specializes in compiling valuations for SBA Lenders and Small Business Owners. BGH provides certified independent business valuations for financing, tax transactions, buy-sell agreements, acquisitions, life insurance, and succession planning.
You can get an estimate of value of your business. The estimates are made using publicly available information, rules of thumb for different industries which will be inapt and differ from the amount that would be realized on a sale in many cases because of information not available to us or other factors, and data that you may provide us. In any event, they are subjective opinions. We hope they are of interest to you. But you should not rely on them for any specific action. This remains true even when you have provided us with additional
information.
The information is provided for your internal use only and may not be copied or redistributed for any reason. You may not use the information for any commercial purpose, including, but not limited to, as a factor in establishing an individual’s eligibility for creditor insurance to be used primarily for personal, family, or household purposes, employment purposes,
or to receive a loan. This information is provided “as is” without warranty of any kind. The information is the intellectual property of BGH Valuation Services, LLC. In no event will BGH Valuation Services, LLC be liable in any way with regard to such information. Your use of the information must in all cases comply with all applicable laws and regulations.
Thanks.