"Working To Bring Buyers and Sellers of Businesses Together"

Business Valuations

RWS- Professional Valuations

  • The largest valuation firm of its kind.
  • Serving Business Owners across the Nation.
  • The RWS database has been developed through thousands of valuations for business owners, business brokers, financial consultants, and lending institutions.
  • A proven track record, maintains integrity, sound judgment, objectivity, and is committed to quality service.

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Why should I always have a current business valuation?

  • Most importantly, is to sell your business at the “Fair Market Value”.
  • For exit strategy purposes when you are planning to sell your business in a few years.
  • Strengthen and enhance your banking relationships and loan negotiations for both business and personal lending, with an updated and documented Personal Financial Statement.
  • Help pre-qualify a prospective Buyer for a preferred SBA loan.
  • To document base value for multiple insurance applications.
  • Position your business in a posture to timely acquire a competitor or complementary business.
  • Determine the base value for a Buy-Sell Agreement and Partnerships.• Estate and Trust planning or Inheritance tax.
  • Reporting to investors in a private firm.
  • Planning for a Merger or Stock offering.
  • For a benchmark value to analyze your business, operations, tax reporting, and strategic planning for future goals.

About Business Valuations:

Most Business Owners use tax returns or financial statements prepared for tax purposes as the basis for the financial representation of their business. As a result, the market value of assets are not reflected, because of depreciation or acceptable deductions that are written off for tax purposes.

While this may be good for tax purposes, tax return financials do not reflect years of hard work in accumulating business assets. The Business goodwill or intangible assets, which represent a major component of what the business is worth, are not a consideration for tax purposes therefore, not addressed in financial statements for tax purposes.

For a business to grow or expand in today’s market, capitol and financing are essential. The financial presentation reflecting what the business is worth can be a powerful tool in dealing with financial institutions, suppliers, and customers.

A Business valuation is essential when the Owner is ready to consider selling their Business. A professional valuation reflects the “Fair Market Value” of a business based on recasted assets and cash flow, and conditions in today’s market. This represents the “TRUE” economic value of your business.

Examples of why it is important to have a Valuation:

  • A few years ago, we valued a manufacturing company at $30 million, and in fact, it later sold for approximately $30 million.After the closing, we learned that the seller and his CPA had originally thought the business was worth “about $17 million”.
  • A Business Owner sold his business for $350,000 to a local Buyer and later found out the business was worth $600,000.
  • A woman inherited a manufacturing company from her husband. He had thought the business was worth $5 million, but never had the business valued. After his death, the IRS valued the business for $8 million. The family had to sell the business at a distressed price to pay the estate tax.
  • A Business Owner spent 15 years building a successful service business. The Buy-Sell Agreement had failed to fund it with an insurance policy tied to the company’s “Fair Market Value”. He died and the company had to sell assets to buy back his stock. The changes in the financial structure caused the company to lose cash flow and it went out of business.
  • A couple had built a successful business but never had it valued. They felt the business was worth $1.5 million including assets. Their child that inherited the business sold it for $2.5 million, causing sibling discord that lasted for years.

Contact The Spiers Group today if you want to get your business transaction closed and get the “Fair Market Value” from your business, that you deserve!

Our Information

The Spiers Group

2512 W. Navigator Drive Suite 100
Meridian, Idaho 83642 USA
Phone: (208) 336-3393
Email: gspiers@cbboise.com