This is to protect your best interest. You will know what dollar amount you should expect to get in the sale if you are a Seller, or the amount that you should pay if you are the Buyer. Why a Business Appraiser? Your accountant and your lawyer are paid to look out for your best interest. That is a good thing. The lawyer’s job is to make sure that all the legalities are covered and there are no hidden issues in the contract that can harm you. His job description does not cover how to value a business. The accountant’s job is to make sure that your books and records are prepared and organized in a sensible manner and to make sure that nothing you do will cause you to have problems with the IRS.
It is funny how when a seller asks his accountant how much his business should sell for he gets one number. The same accountant, when he is representing the buyer, will say that the number should be much lower. The identical business should have a credible dollar value. Why the difference in numbers? The answer is, if they are your advocate they feel that they should bend the numbers in your favor, whether you are buying or selling.
To get the most accurate valuation, you need an independent third party business appraiser. Someone capable of justifying the selling price, even in a court case if need be. They can give you the most accurate valuation because they are unbiased and have the experience, credentials, expertise and knowledge needed.
Our appraisers have the following accreditations:
Asking Price: $300,000
Gross Revenue: $500,000
Cash Flow: $89,000
FF&E: $50,000 (included)
Inventory: $61,000 (not included)
They serve all platers that do Decorative Chrome on plastic and on metal. Zinc Platers, Silver Platers and Gold Platers. This is a niche business. Every item that requires plating must be placed onto a rack (a holder) before being immersed into the tank for the plating process. The rack has to be designed to fit the part. This company manufactures all of these types of racks.
Another profit center is to Rebuild existing Racks.
The closest competition to this company in Ohio is in Dayton. Someone in good health can increase the gross sales and net profit substantially. Prior to getting sick, they had net income of $195,000 a year
There are two buildings. Each building has 3250 sq. ft. They are leased for $1500 per month.
There are 10 employees altogether. The Sellers are ill and are unable to keep up with the demand for their business. They will negotiate the amount of time they will be able to stay with the Buyer to assure a smooth transition.
They are currently located in Wickliffe, Ohio, but the business could be relocated.