Placing the right value on a business is the single most important part of any transaction.  As a buyer, your negotiating position with the seller is always stronger when you have a professional business appraisal using credible sources to document the value of the business and provide a basis for price and terms discussions.  As a seller, providing a professional appraisal to prospective buyers gives them a basis for your position on the value of your business.  We offer three different professional appraisals to meet the needs of sellers, buyers, owners and minority shareholders.  Our BA I, II and III each come with a Certified Report and comparable sales.  Each appraisal is individually crafted and draws from databases of more than 32,000 sold businesses.  Our staff members hold professional affiliations including the Institute of Business Appraisers and Society of Business Analysts with Senior Business Analyst certification.

•  What is Business Appraisal?
  Business Appraisal is the systematic use of financial and business analysis to produce a professional opinion of value.  Accurate appraisal comes from a disciplined approach to both current and historical financial conditions as well as locational analyses, ownership, employees, market projections, sales strategies, competition, industry measurements and other key data.  Numerous mathematical, financial and what-if models  must be employed as well as databases of market comparables, industry statistics, lending benchmarks and other proprietary data banks.  Once this analysis is completed, the evaluator can accurately predict what the business, either all or part, will sell for under reasonable circumstances in a reasonable amount of time. Appraisal is both art and science and demands financial acuity, careful decision making and extensive market experience.  Florida Business Advisors and its appraisers combine all of these elements with more than 100 years of experience in the appraisal of closely held companies.   
  
  
•   What Makes Our Business Appraisals Unique
  Florida Business Advisors combines both business analysis with business appraisal to create a comprehensive report. This means we analyze not only the financial performance of the business but look at other variables as well, such as stability of income, cashflow, industry benchmarks, company markets, sales and marketing strategies, locations, management, operations, employees, strategic plans, license requirements, proprietary knowledge and other areas.  All of these factors influence value and must be examined when making a value determination.  While the various service levels we offer determine the depth of the analysis, these services are part of each appraisal package we offer.  For buyers, these services add value by providing a preliminary due diligence that looks at other variables that affect the business.  For sellers and business owners, this service provides valuable feedback on how you can enhance or improve your businesses performance to increase value. 
  
  
•  Why Should I Have a Business Appraisal Done?
  Business Appraisals are essential when you are buying a business, selling a business or obtaining any type of financing.  Tax returns typically do not show the "fair market value" due to profit minimization, depreciated assets and no value placed on goodwill or cash flow.  The so called "rules-of-thumb" and "industry averages" are not accurate in determining value and are typically disdained by professional business appraisers.  This is why FBA uses comparable databases of more than 32,000 "real-world" transactions when determining market value, as well as other industry standard methods.  Appraisals are commonly used in the following situations: Business Sales, Business Purchases, Business Loans, Company Mergers, Estate Plans, Trust Transfers, Divorce of Principals, Litigation Matters, Insurance Claims and Employee Stock Ownership Plans and employee Buyouts.  Placing the right value on a business is the single most important part of any transaction.
  
  
•  Business Appraisal I - Opinion of Value
  Approach: Using the Market Data Approach, our BA I utilizes real world transactions to provide a value range based on Price-to-Revenue (P/R) or Price-to-Seller Discretionary Earnings Ratios (P/SDE). Sellers use this appraisal to justify a price to Buyers, while Buyers can quickly and affordably determine the value of prospective purchases.  Report: When we complete our appraisal we issue a 9-page Certified Report that details the appraisal methodology and value conclusions and gives you the actual market comparables for your reference.  Best for: Quick, accurate market price range for small business going concern using the last fiscal year financial information. Turnaround time: 5 business days.  What we need: Last year's tax return, profit and loss, balance sheet, market value of FF&E, leasehold improvements and vehicles, SDE detail and a detailed description of the business.
  
  
•  Business Appraisal II - Business Evaluation
  Approach: Utilizing the Combined Approach, we prepare the BA II by reviewing seventy-two key business and operating variables and analyze the Asset Value and Business Value.  Asset Value (tangibles) include inventories, Furniture, Fixtures & Equipment (FF&E), Leasehold Improvements (LH), and transferable rights and privileges.  Business Value (intangibles) include assessment of customer base, location and improvements, management systems, proprietary rights, competition, free training and consulting time and other key variables.  Asset Value and Business Value are then combined to produce the estimated Current Market Value.  Ten different methods of valuation are reviewed and weighted to provide an accurate assessment.  These include the Asset Method, Basic Method, Capitalization of Earnings, Critical Factor, Debt Capacity, Industry Method, National Method, Weighted Method, Comparable Sales Approach and Multiple Average Approach.  A Justification of Purchase is executed to test the reasonableness of the proposed price.  A table of Post-Sale Cash Flow, less debt to purchase the business is created as is a Reasonability Analysis to show return on investment and key ratios.  The BA II is appropriate for in-depth pricing of businesses where the appraisal demands more than just market comparables.  Sellers of businesses use this appraisal to justify a price to Buyers, show return on investment and project post-sale cash flow.  Buyers have greater confidence using this comprehensive tool to understand real-world value, return on investment and post-acquisition cash flow.  Report: When complete we issue a 24-page Certified Report that details methodology, pricing and justification in an easily understood, professional format.  Best For: Small to medium price benchmarking that considers all aspects of the business and utilizes additional historical financial information. Turnaround time: 10 business days.  What we need: Interim profit and loss statement and balance sheet, the last three years of tax returns, profit and loss statements and balance sheets, market value of FF&E, leasehold improvements and vehicles, SDE detail and a detailed description of the business.
  
  
•  Business Appraisal III - Certified Business Appraisal
  Approach: Using the Comprehensive Approach in our most thorough business appraisal, we develop an extensive financial profile analyzing three to five years of financial history.  In addition we analyze economic and industry data as well as the history of the business, its product lines, competition, management and employees.  We then analyze this data and formulate conclusions based on income, market, and asset approaches to valuation.  Income approaches include Capitalization of Earnings Method, Capitalization of Excess Earnings Method and Discounted Future Earnings Method.  Market approaches include Market Data Method and Industry Composition Method. Asset approaches include Book Value Method, Adjusted Book Value Method and Liquidation Value Method.  Where appropriate we apply Control Premiums and Discounts and Marketability Discounts.  Along with this we provide a Post-Sale Cash Flow Analysis, Return on Investment Analysis and other key reports.  We draw on databases of more than 32,000 sold businesses for market comparables giving you tangible correlation to real-world transactions.  Report: When complete we issue a 40-page Certified Report that includes the methodology, valuation and financial projections.  The appraisal complies with the Uniform Standards of Professional Appraisal Practice (USPAP) and is IRS 59/60 Rule compliant.  The BA III is commonly used in medium to larger transactions and is esteemed for its comprehensive professional approach to value analysis.  Best for: Comprehensive formal appraisal needs where in-depth analysis is required utilizing 3 to 5 years financial data as well as industry databases for performance comparison. Turnaround time: 20 business days.  What we need: Interim profit and loss statement and balance sheet, the last three years of tax returns, profit and loss statements and balance sheets, market value of FF&E, leasehold improvements and vehicles, SDE detail and a detailed description of the business.  This appraisal also includes a visit to the premises and an in-depth interview with company owners.
  
  
•  Special Programs
  In addition we have our Annual Appraisal Program that provides an appraisal each year at a reduced cost, to benchmark your company's worth and document progress.  This is an excellent tool when you are ready to retire and sell your business, or to raise capital as needed.  When a valuation requires the expertise of a CPA or attorney, we use our network of specialists.  
  
  
•  Pricing and Rush Orders
  Call our office for pricing.  For rush orders, please allow extra charges.  We accept all major credit cards and will start on your project as soon as payment is received.
  
  
•  Fast Turnaround and On-Target Appraisals
  You'll be impressed by our commitment to serve you in the most cost-effective and time-effective manner possible.  Phone 727-712-1222 or email us for further information or, to order your appraisal.