Business Valuation
Business Valuation Services
Our Business Valuation services help business owners understand the estimated value of their business, identify key value drivers, and make informed decisions about selling, growing, transitioning, or planning for the future.
Market-Based Valuation Review
We evaluate your business from a practical, market-based perspective, considering financial performance, industry trends, buyer demand, comparable sales, and other factors that may impact value.
Value Improvement Guidance
Our Business Valuation services help identify opportunities to improve business value, reduce risk, and better prepare the business for a future sale, succession plan, partnership change, or ownership transition.
Understand What Your Business Is Worth
A business valuation gives you more than a number. It provides insight into your company’s financial performance, market position, risks, strengths, and opportunities to improve value.
LegalWise Business Brokers helps California business owners understand the estimated market value of their businesses so they can make informed decisions about selling, succession, retirement, growth, ownership changes, and future planning.
Business Valuation Services
Understand Your Business’s Value
Receive a practical assessment of what your business may be worth based on its financial performance, market conditions, industry, operations, and other important value factors.
Identify Key Value Drivers
Learn which areas of your business may be increasing or reducing value, including profitability, recurring revenue, customer concentration, staffing, systems, and owner dependence.
Prepare for What Comes Next
Use your valuation to prepare for a business sale, ownership transition, partner buyout, succession plan, growth strategy, or long-term exit.
Know Where Your Business Stands
For many business owners, their company represents years—or even decades—of hard work. Yet many owners do not have a current, realistic understanding of what that business may be worth.
Revenue alone does not determine business value. Buyers, lenders, and the marketplace also consider profitability, cash flow, risk, transferability, industry conditions, operational strength, growth opportunities, and the company’s dependence on its owner.
A business valuation can help you understand where your business stands today and what steps may strengthen its value in the future.
When Should You Value Your Business?
A valuation may be helpful when you are:
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Considering selling your business
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Preparing for retirement
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Developing an exit or succession plan
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Evaluating a partner or shareholder buyout
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Restructuring ownership
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Planning for a family transition
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Exploring growth or acquisition opportunities
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Reviewing insurance or estate-planning needs
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Establishing a baseline for future value improvement
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Simply wondering what your business may be worth
You do not need to be ready to sell to benefit from understanding your business’s value.
What Goes Into a Business Valuation?
Financial Performance
We review revenue, expenses, profitability, cash flow, seller’s discretionary earnings, EBITDA, owner compensation, potential add-backs, and historical financial trends.
Market and Industry Conditions
We consider industry performance, economic conditions, buyer demand, comparable business sales, financing availability, and other market factors.
Operations and Management
We evaluate staffing, management structure, documented procedures, technology, operating systems, and the extent to which the business depends on its current owner.
Customers and Revenue
We consider recurring revenue, customer concentration, contract strength, customer retention, revenue predictability, and opportunities for continued growth.
Assets and Liabilities
Depending on the business, we may review equipment, inventory, intellectual property, leases, working-capital needs, liabilities, and other assets involved in the operation.
Risk and Transferability
We identify factors that may affect marketability, such as inconsistent records, licensing requirements, lease concerns, employee dependence, declining revenue, or relationships tied primarily to the owner.
Our Business Valuation Process
1. Initial Consultation
We begin by discussing your business, the purpose of the valuation, your ownership goals, and any upcoming decisions or transitions.
2. Information Gathering
We provide a customized document request based on your business and the level of valuation needed. Information may include tax returns, profit-and-loss statements, balance sheets, payroll information, leases, equipment lists, and operational details.
3. Financial and Operational Review
We analyze the company’s financial performance, normalize earnings where appropriate, and assess its operations, market position, value drivers, and risk factors.
4. Market Analysis
We consider relevant industry information, comparable transactions, buyer expectations, financing conditions, and current market demand.
5. Valuation Findings
We present our findings and explain the assumptions, financial adjustments, market factors, and business characteristics that influenced the estimated value.
6. Planning the Next Step
If appropriate, we help you identify ways to strengthen value, prepare for a future sale, or incorporate the valuation into a broader exit or succession plan.
Choose the Right Valuation for Your Purpose
Not every business owner needs the same type of valuation. The appropriate option depends on why you need the valuation, how the report will be used, and whether an independent certified opinion is required.
Market-Based Business Value Assessment
A practical assessment designed to help you understand your business’s potential market value, identify important value drivers, and begin preparing for a future sale or ownership transition.
This option may be helpful for:
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Early-stage sale or exit planning
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Identifying opportunities to increase value
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Establishing a baseline for future planning
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Understanding how buyers may view the business
Broker’s Opinion of Value
A Broker’s Opinion of Value, or BOV, is prepared by LegalWise Business Brokers to estimate the price range a business may reasonably achieve in the current market.
The analysis may consider normalized earnings, seller’s discretionary earnings or EBITDA, comparable transactions, industry multiples, buyer demand, financing conditions, operational risks, and professional brokerage judgment.
A BOV is generally used for sale preparation, pricing discussions, and exit planning. It is not a certified business appraisal and may not be appropriate for legal, tax, lending, or regulatory purposes.
Certified Third-Party Business Valuation
When a more formal and independent opinion of value is needed, LegalWise Business Brokers provides access to certified business valuation reports through BizWorth, an independent third-party valuation provider.
BizWorth reports are prepared and signed by NACVA Certified Valuation Analysts. Depending on the report selected, the analysis may include recognized valuation methods, normalized financial statements, industry research, economic analysis, comparable transactions, financial benchmarking, and a detailed explanation of the valuation conclusion.
Certified third-party valuations may be appropriate for:
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Business purchases or sales
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Partner or shareholder buyouts
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Buy-sell agreements
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Estate and gift planning
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Divorce or business disputes
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Financing and SBA lending
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Capital raises
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Litigation or other formal purposes
The report type should be selected based on its intended use. Acceptance requirements can vary, so clients should consult their attorney, CPA, lender, or other professional advisor before ordering a valuation for a legal, tax, financing, or regulatory matter.
Not Sure Which Valuation You Need?
We will discuss your goals, how the valuation will be used, and the level of analysis required. From there, we can help you determine whether a market-based assessment, Broker’s Opinion of Value, or certified third-party valuation is the most appropriate option.
Business Value Is More Than a Formula
Two businesses with similar revenue and earnings can have very different values.
A business may be more attractive to buyers when it has:
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Consistent and well-documented earnings
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Recurring or predictable revenue
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A diversified customer base
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Experienced employees and management
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Documented procedures and operating systems
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Favorable and transferable lease terms
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Limited dependence on the owner
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Clear opportunities for continued growth
Understanding these factors early gives you time to address weaknesses, reduce risk, and improve the business before an ownership transition.
Why Work With LegalWise Business Brokers?
Practical Market Perspective
We evaluate businesses with an understanding of actual buyer expectations, financing considerations, transaction risk, and current market conditions.
Valuation and Transaction Experience
Our valuation guidance is informed by experience with business sales, acquisitions, due diligence, exit planning, and ownership transitions.
Comprehensive Planning
A valuation often connects to a larger decision. We help owners understand how value relates to selling, succession, retirement, growth, and long-term planning.
Collaborative Approach
When appropriate, we coordinate with your CPA, attorney, financial advisor, lender, or independent valuation professional to support a well-informed process.
Confidential Service
Your business information and future plans are handled with care and discretion throughout the valuation process.
Frequently Asked Questions
How is the value of a business determined?
Business value may be estimated using several methods, including income-based, market-based, and asset-based approaches. The appropriate method depends on the business, its financial performance, industry, assets, risks, and the purpose of the valuation.
What documents will I need to provide?
Documents commonly requested include three years of tax returns and financial statements, a current year-to-date profit-and-loss statement and balance sheet, payroll information, details of owner compensation and potential add-backs, an equipment list, lease information, and information about employees and operations.
Is revenue the same as business value?
No. Revenue is only one consideration. Profitability, cash flow, risk, marketability, customer concentration, owner dependence, assets, industry conditions, and growth potential can all affect value.
Do I need a valuation if I am not ready to sell?
No sale needs to be planned. A valuation can establish a baseline, support succession or retirement planning, identify value-improvement opportunities, and help you make informed decisions about the future.
Is a broker opinion of value the same as a certified appraisal?
No. A broker opinion of value is generally intended to estimate probable market value for planning or a potential sale. A certified valuation may be appropriate for litigation, taxation, estate planning, certain lending matters, or other formal purposes.
Is my information kept confidential?
Yes. Business valuation information is handled confidentially and shared only as authorized or required for the engagement.
Start With a Clear Understanding of Your Business
Whether you are preparing to sell, planning for succession, evaluating an ownership change, or simply looking ahead, understanding your business’s value is an important first step.
Let’s discuss your business, your goals, and the type of valuation that may be appropriate for your needs.