Rate your Business
Carrying out the appraisal of a business or property is especially important when you are going to buy or sell; to guarantee a bank loan; or to elect for insurance coverage. The appraisal, when prepared with technical precision, reinforces credibility and reduces subjectivity in relation to the market price of the business. Statistics show that businesses that are sold backed by an appraisal manage to close on average with discounts of less than 10% of the original price.
The valuation methods used by our professional team are the following:
- Comparative Market Analysis: The sales operations of similar businesses or properties that have been carried out recently are identified, the values are adjusted in accordance with the differences that may exist with the business or property to be valued and the pertinent formulas are applied to obtain the comparative market value.
- Replacement cost analysis: It is based on calculating the cost required to exactly duplicate the business or property under study as long as they have the same use and capacity to generate income, even if they differ physically.
- Income Capitalization Analysis: Using this method, the present value of the business or property is determined by applying the estimated capitalization rate to the flow of future benefits.
- Liquidation Value: Through this method, the appraiser assumes that the business is going to be liquidated and for its valuation analyzes variables such as the capacity of the firm to cover its short-term commitments, the value of the inventories and the liquidation value of the preferred shares.
If you want to contract an appraisal, contact us to request a budget without commitment.