BROKERS NETWORK GROUP affiliates are able to provide true third-party reports for either valuation or appraisal purposes. These reports are prepared by National Business Valuation Services, Inc., an independently owned and managed professional business services company.
Most businesses are sold as “asset sales” versus “stock transfers”. This means that the business owner will retain certain assets and may pay certain bills. Typical examples of assets retained are cash in the bank, vehicles for personal use, life insurance policies, etc.
When an expert is determining the price that a business should produce on the open market, a business valuation report is prepared, which takes into consideration the fair market value of the assets and the going concern values. Many factors must be considered when arriving at the market value.
A properly prepared valuation report is the best tool a business owner can have in obtaining the maximum selling price for a business. Buyers insist on justification of value. NBVS reports provide extremely accurate pricing and how to obtain that price, including recommendations concerning down payment, terms, and interest rates to ask.
Business appraisals take into consideration the value of the business totally intact. This type of report is usually prepared for trusts, inheritance taxes, estate planning, partnership buyouts, divorce settlements and other non-traditional sale of business applications. Strict standards must be met for such a report to comply with the requirements of the Internal Revenue Service, state and federal courts.