MauiBusinesses.com

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

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.