Question about how to find business value! please help

[mlwhite79]

Does anybody experience or preference with a valuation tool that quickly estimates the value of a business before spending money on an appraiser? Interested in what people use for divorce settlements. Thanks.

 

[quincy]

Does anybody experience or preference with a valuation tool that quickly estimates the value of a business before spending money on an appraiser? Interested in what people use for divorce settlements. Thanks.

What is the name of your state or, if not in the U.S., what is the name of your country?

 

[OHRoadwarrior]

Good Lawyers.

 

[quincy]

Good Lawyers.

An attorney is not a "valuation tool."

 

[OHRoadwarrior]

An attorney is not a "valuation tool."

Have you ever been sued? I was once sued for over 3 million dollars. They create value from thin air.

 

[quincy]

Have you ever been sued? I was once sued for over 3 million dollars. They create value from thin air.

No, OHR. I have never been sued.



mlwhite79, please post the name of your state or, if you are not in the U.S., please post the name of your country. Thanks.

 

[ecmst12]

Actually if you are not in the US, don't bother coming back since this site is for US law only.

 

[Mass_Shyster]

One method is to value the company at four times the annual net profit. That is based on an assumption that the investment is higher risk than your ordinary stock market return.

That also assumes a passive investment. The buyer should base the numbers on paying employees to do all the work (including accounting and auditing).

Using this model, if the business cannot support itself (business is losing money) it has NO value.

 

[LdiJ]

One method is to value the company at four times the annual net profit. That is based on an assumption that the investment is higher risk than your ordinary stock market return.

That also assumes a passive investment. The buyer should base the numbers on paying employees to do all the work (including accounting and auditing).

Using this model, if the business cannot support itself (business is losing money) it has NO value.

I don't disagree...but someone isn't going to be investing any money in the business, they are valuing it for the purposes of a property settlement in a divorce.

Another method is two times annual sales.

Another method is to simply value fixed assets.

One major point however to consider is, if this is the type of business that relies strictly on the work of the business owner (a consultancy, a plumber operating on his own, a doctor or lawyer with their own office, etc) then really, the only value considered should be the value of fixed assets.

 

[mlwhite79]

I am in Utah. I am looking for an online valuation tool that could give me a good ballpark estimate - it doesn't necessarily have to be free.

 

[ecmst12]

That is not a legal question.

 

[quincy]

"Online valuation tools" would certainly seem to me to be a better search choice than "Free Legal Advice," but at least Stevef and LdiJ had helpful posts.

 

[mlwhite79]

I don't want to get personal, but if you are looking for the value of your spouses business which may or may not be as stated, does anyone have experience with a website that can give a ballpark figure -- sort of like a comp from a business MLS?

 

[quincy]

I don't want to get personal, but if you are looking for the value of your spouses business which may or may not be as stated, does anyone have experience with a website that can give a ballpark figure -- sort of like a comp from a business MLS?

Did you try putting "online valuation tools" in your search bar instead of free legal advice? That actually works.

 

[ecmst12]

Still not a legal question.