In the end, a business is worth nothing more and nothing less that what a qualified buyer is willing to offer and what a motivated seller is willing to accept.

From a buyer's standpoint, the business he or she is interested in purchasing must produce or have the ability to produce a steady income stream sufficient for him/her to withdraw at least a "fair market" salary as well as enough additional cash to purchase the business. A buyer will look at key financial ratios, the current equipment mix, cash flow and potential reductions in labor and overhead costs as a method for funding this purchase.

From the seller's standpoint, he or she is interested in getting the highest price possible for the business with the least risks possible. Sellers, having owned and operated their businesses for many, many years, most often tend to place an unrealistically high value on their business. Without a logical approach to determining the value of the business, and lacking excellent financial records and ratios, the disparity in what the buyer is willing to offer and what the seller is willing to accept is often much further apart than it should be, thus discouraging one or both parties. From the seller's standpoint, valuations are best done long in advance of actually attempting to put the business on the market, since valuations often highlight area's for potential improvement that can dramatically increase future value.

A disclaimer - I am not a business broker. I do not bring two parties together nor do I help negotiate the sale or purchase of a business. I work for either the buyer or seller but not both. My valuation service assists either a buyer or seller by providing an independent, 3rd party "fair market" valuation of the business.

It is important to understand that there is no "perfect" price for a business. A valuation conducted for a potential buyer might end up being significantly lower, than what a valuation for a seller might me - this being true despite the fact that the same data is being used in both cases.

Information Required - My valuation process relies heavily on 3-4 year's worth of weighted financial data and widely accepted formulas for determining the value of a printing business. I also rely on a 15-item questionnaire to more accurately determine an excess earnings multiplier or capitalization rate. These are the types of items I require for a typical valuation:

1. A minimum of 3 year's worth of financial statements
   
   
2. A list of all employees, including job descriptions and pay rates
   
   
3. A list of all key equipment along with their estimated replacement value
   
   
4. A list of the top 50 customers ranked by sales
   
   
5. Photographs of both exterior and interior of building or business
   
   
6. A narrative written by either buyer or seller describing in as much detail as possible their background and experience levels.

What the client receives - The client receives a 2-4 page income and expense reconstruction worksheet, a valuation criteria worksheet, and a consolidated valuation report stating the estimated value of the business.

How long does it take - Valuations, once all the material is received, typically take 5-7 days to complete, but can be prepared sooner under special situations.

How much does it cost - The cost of this service is $1,800, and is due upon engagement. We do accept MasterCard, Visa or AMEX .

Contact Information
Telephone: (321) 727-2444
Fax: (321) 727-2166
Address: 2110 South Dairy Rd., Melbourne, FL 32904
Contact: John Stewart at QKconsult@aol.com