How does “HBVS” compare with other business valuation / appraisal services?
It takes an experienced and methodical group of valuation and appraisal specialists to complete the comprehensive work you need performed on your business. Do you want to know the “real world” value of your business? From non-physical components like reputation to the value of your business property, our large and small business appraisal services take a deep dive to evaluate every nook and cranny.
Other business valuation consulting companies are available, of course, but few use the data gathering systems, formulas, checking and double-checking techniques reflected by the HBVS discipline. Despite our thorough approach to every large or small business appraisal, we make it a point to be efficient and cost-effective.
Other business valuation companies are available, of course, but few use the data gathering systems, formulas, checking and double-checking techniques reflected by the HBVS discipline.
Our business value analysis includes an intensive examination of a firm’s financial performance along with full identification of its operating assets. To determine a firm’s value, many business valuation / appraisal services will use the cost, market, and income methods; and/or a host of industry ratios; plus subjective assessments of market position and niche, market share and presence, and even the contribution offered by the management team. Subjectivity, however, is neither a characteristic nor a component of the HBVS system.
In some scenarios, business valuators use “magic formulas,”; which amounts to a certain reciprocal of earnings or revenues to determine business value. A supermarket “expert” once stated that supermarkets could be valued at 7½ x earnings. Our response to this business valuation approach is simple: What and how are “earnings” defined and who is authorized and qualified to make this determination?
Some valuation services spend dozens, even hundreds of hours doing field research with and/or for the client — and then spend more time assembling and interpreting data. That may be worthwhile for a client who is patient and has an ample budget set aside for the project. We don’t necessarily object to these methods, but the HBVS approach is different.
HBVS appraisals are based on facts and current hard data. When complete, fully analyzed and verified, data is entered into the HBVS computer model and compensated by the HBVS formulas, which contain capitalization rates and other algorithms proven over time. We don’t disagree with valuators who use subjective factors (market presence, share, reputation); but we believe that those factors, if desired, should only be considered after the hard numbers have been used to produce a “real world” business value.
The real profit of the business will increase.
The real profit of the business will remain the same.
The real profit of the business will decrease.
Only through generating real business profit over time will an investor’s stake be returned. After all, a business buyer’s true profit (profit received after the return of all original principal) begins only after the total investment has been fully recovered. It is therefore imperative that the price or value of the business be accurately established at the outset of negotiations.
The HBVS non-subjective, hard-data approach to business valuation is closest to reality. We hope you will give us an opportunity to demonstrate its utility. And there is no charge for initial conversation.