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Technology Company

I would certainly recommend VR and would use them again if I had the need. They kept their promises, worked hard and sold my business to a buyer from across the country. Choosing VR was one of the best decisions I ever made with my business.

Sign Code

Mohan and Troy at VR were great to work with. The entire process was great. They really know their business.

eSupplyStore

Troy - thank you for all your hard work with eSupplyStore. I know we found the right buyer at the right price. I don't see how the process could have gone any smoother.

Learning Center

VR did an excellent job of selling my franchise. This is actually the second time that I have used their services and I have been impressed both times.

Health Gazette

I owned the Health Gazette for over 30 years and it was important for me to find the right buyer. VR gave us a fair market value for the business and sold it for exactly that amount. I could not have been more pleased.

VR really took the time to understand my needs. I think their expertise was a big reason the transaction happened.

Publishing Company

VR stood out from the competition. They were the best fit when it came to selling my business.

Retail Bookstore

I was extremely impressed with VR. They approached the sale of my business with a very professional system. I knew my business wasn't large, but I still got a high level of service. I would certainly recommend VR to anyone thinking about selling their business.

Diamond Design

I hired VR to sell me construction company. They worked hard through the whole process and found the right buyer. They did a great job and I would use them again.

Sylvan

I wanted to send a note and thank you for all your hard work. This has been a great experience and I really enjoyed working with VR.

Pure Air Systems

I tried other brokers in town and they just put some ad in the newspapaer and it didn't result in much.

Carrell Welding

VR did a very good job for us. They set the price for my business, found the buyer, and worked through all the details.

Commercial Business Systems

I first used another brokerage company to try and sell my business, but it did not work. VR was totally different, very professional and they sold my business for almost full asking price.

TheEasyForms.com

VR exceeded my expectations in selling my online business. I got the full asking price of the business. We got several offers within the first couple of weeks. The entire process took less than 6 weeks from start to finish.

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Business Valuation Basics


Accurately valuing a business is the foundation to any acquisition.  It can be one of the most difficult tasks for both a buyer and a seller.  There a lot of "rules of thumb" methods out there for just about every industry.  Valuation experts use technical methods including discounted cash flow, multiple of seller's discretionary earnings, comparative transactions, asset based, etc.  However it doesn't have to be an overwhelming task.  It you apply some common sense you will be able to understand the process.


The value of any business comes down to one thing: the amount of money the business will produce in the future.  For large companies, a very complex process is used to predict future earnings.  For small and medium sized businesses, it is too difficult and risky to predict the future, so we assume that past performance is a good indicator of what the future will bring.  So when we say that the value of your business is 3 times your seller's discretionary earnings, we are assuming that your past earnings will continue into the future.  Almost all valuation techniques are based on this very important assumption.


I am reminded of a valuation that was prepared for a business owner several years ago.  The business was a medium-sized manufacturer of metal components.  The business owned the real estate in which it operated.  Part of the real estate was not utilized and leased out to another company.  The lease payments totaled about $75,000 per year, which was included in the earnings of the company.  However, the real estate was not going to be sold in the transaction.  During the valuation we had to subtract the $75,000 of income to arrive at an accurate SDE.

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