Information Needed for Valuation

For Sellers

Three Years of tax returns for the business (Federal only)
Current year to date information, if available. Ideally this year vs last.
List and amounts of moneys paid for the owner(s) benefit. If multiple owner(s) need breakdown by owner. This would include salary, benefits, and other personal items that a new owner may or may not decide to pay when they own the business
General information about the business and the industry. Most owners can answer these questions without gather facts.

Your Salary requirements
Cash to Invest
Return expected on investment
Asking price of the business
Asking price of the real estate (if appropriate)
Seller financing available (need amount or % of purchase price)
Rent currently paid by company (if Real Estate purchase being considered)
Cash Flow of the business
Capital needs when purchased. How much money will you need once the business is purchased? The current owner can usually tell you this. But typically you need some money to make sure you can pay employees or continue to buy merchandise while waiting on customers to pay you. If you can't find out, we can help you come up with a number based on the current business financials.
Annual Capital needs. How much money you may need annually to reinvest in the business. This is typically to buy new equipment or upgrade technology or facilities. If you don't have a number, we can help you come up with a number based on current financials and your plans for the business.

Quick Valuation Report

Full Valuation Report

All the items listed for the Quick Valuation report above
Three years of tax returns, or financial statements for the business.
Cash flow per the seller or the seller's broker.
Items to confirm the cash flow. I cash flow provide by broker, understand what each adjustment on the cash flow statement represents. If no cash flow statement provided by seller/broker then create a list and amounts of moneys paid for the owner(s) benefit (ideally by year). If multiple owner(s) need breakdown by owner. This would include salary, benefits, and other personal items that you, as the new owner, may or may not decide to pay.
Customer base sensitivity. In other words, how many customers does it take to represent 30% of business. What about 50%. Are they dependent on just a few customers, or is the business spread over many customers?