Determining the value of a business not only involves the
appraisal of personal property and intangibles such as goodwill, it often
includes real estate owned by the company and used in the business
operation. In fact, in some businesses a
majority of the value of the business is tied to its real estate holdings.
Another important asset of the business is its income stream. This is
especially true of businesses that make lots of money and have few hard assets.
In such a case, the income is capitalized to determine a Market Value of the
Business. This process involves the determining of a capitalization rate which
can be a challenge to the inexperienced Business valuation appraiser.
Businesses that have both substantial hard assets and a healthy income stream
also present a challenge to the appraiser. In this case, care must be exercised
not to double dip, or to count the value of both the hard assets and the income
stream as if both are independently responsible for contributing to the value
of the company as a whole. These issues
make selecting a knowledgeable appraiser paramount to obtaining a creditable
Market Value conclusion.
ELLIOTT® knows business and understands how to evaluate a
business. We serve the entire United States. Give us a call for a no obligation