Not all business valuations are created equally

Many people think the way to establish a valuation is to simply calculate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

and multiply by “some multiple.”

This “some multiple” usually comes from what the owner heard from others in the industry or through an online search. However, this method often leads to inaccurate and misleading results.

At Affordable Business Valuations, we take

a comprehensive and tailored approach to ensure accuracy and relevance:

 Industry-Specific Valuation

 Our valuations take into account your business’s Standard Industrial Classification (SIC)   code. This means there's no guessing as to the multiple, as your business will be   compared to others in your specific industry. This method provides a more accurate and   industry-relevant valuation.

 Owner Involvement

 We factor in how involved the owner is in the business. If the owner “wears all the hats,”   the business is worth less than one that can function independently. We can run   valuations both ways (with minimal or maximum owner involvement) to show the   difference in value, giving you a clear picture of how your role impacts the business’s   worth.

 Comparative Financial Analysis

 Our valuations also compare your financials with industry peers using a “green, yellow,   red” light system. This visual and straightforward approach helps you understand where   your business stands in comparison to others. Additionally, we provide value-driver   recommendations so you know which areas to focus on to raise your valuation.

 Expert Consultation

 We believe that valuations aren’t just numbers on a page; they tell the story of your   business. That’s why we include a consultation with the financial expert who prepared   your valuation. This ensures you understand the numbers and have the opportunity to   ask questions, making the valuation process more meaningful and actionable.