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Business Valuations

Determining the Value of A Business

You have a profitable business, and want to buy a competitor. How much should you pay?

Can you afford to buy this company?

You want to buy the family business from your parents.
How much is it worth?  What is a price that is fair to all parties?

How is a business value calculated?

Value of future income using income capitalization.

Interest rate reflects the risk

Discounted for lack of marketability

What are economies of scale?

Economies of scale in combining companies

Cost savings are payroll, rent, insurance, phone

We are experts in analyzing these cost savings.  Understanding these cost savings is sometimes the difference in a transaction making sense.

What documents are needed from the seller?

Customer list, financial statements and tax returns, liabilities, pending litigation.

We know what documents are needed, and will work with your attorney to get the transaction approved and closed.

The right deal is unique to every buyer. To find out how Affinity Financial Services can assist you in purchasing the right business for the best price, call us at (847) 502-8072.

Affinity Financial Services