What is My Business Worth?

Our business valuation reports present an in-depth analysis that establishes the worth or fair selling price of business.

Business owners should consider a professional business valuation when:

  • Selling a business
  • Buying a business
  • Offering stock of their business to investors
  • Securing a business loan
  • Planning their estate
  • Transferring a business into a trust or creating a succession plan
  • Determining the assets and liabilities of their business in a divorce settlement
  • Assisting attorneys in litigation
  • Settling an insurance claim
  • Establishing an ESOP (Employee Stock Ownership Plan)

What Your Company is Worth

According to the Multiplier of Discretionary Cash Flow Valuation Method under the most ideal of conditions.

Disclaimer: This valuation method is extremely superficial and it is offered here only because most business brokers use it, and many business owners want to see a quick number. This is no substitute for a professional market evaluation if you really want to know how to price your business to meet your objectives.

Step 1: Calculation of Discretionary Cash Flow (DCF)

  1. Most Current Year's Annual Net Operating Income (NOI) _________
  2. Add Expensed Depreciation _________
  3. Add Expensed Interest _________
  4. Add Expensed Owner's Salary _________
  5. Add Owner's Perks _________
  6. Add or Subtract Non-Recurring Expense or Income_________
  7. Add Discretionary Expenses _________

Total is DCF _________

Step 2: Calculate Valuation

  • If DCF is less than $100,000, but over $75,000 multiply by 2
  • If DCF is $100,000 to $300,000, multiply by 2.3 to 3.0
  • If DCF is over $300,000, multiply by 3 to 3.5

But, far more accurate and generally accepted is to have your qualified broker merge the values of:

  1. Leasehold improvements (depreciated)
  2. Furniture fixtures, and equipment (depreciated)
  3. Resalable Inventory
  4. Value of intangible assets
  5. An appropriate multiple of discretionary cash flow

Then add or deduct a "factor" considering  the worthiness & practicality of the lease and location of the business as well as the number of un-expired years on a valuable lease.

Your Valuation Specialist is qualified to develop a reliable worth of your business.

Confidentiality is our #1 Priority
(All Businesses are LH unless otherwise stated)
For more info email us at millenniummaui@gmail.com

Michael Capuano (S)
Millennium Realty, Inc.
phone: 808-280-0394
fax 24-hour: 808-244-6222
PO Box 1537
Kihei, HI 96753