Southern Mergers & Acquisitions

Valuations & Appraisals

We do not require our clients to obtain a formal appraisal. This decision remains strictly with the business owner. A formal appraisal by an independent third party can be helpful in the selling process. Southern Mergers can arrange for third party appraisals. The fee may vary depending on the extent of the work to be done in the appraisal and the size and nature of the company.

Business appraisals are quite different than real estate appraisals. There are many factors taken into account and the terms of a sale often have a bearing on the overall price. Currently, there is no formal database for the recording of the sale of privately owned businesses. Historical cash flow or adjusted earnings and associated risks within a business are the major components in establishing value in a company. There is actually a range of value for which a business will sell. Your Southern Mergers representative can help you to understand this in greater detail, including helping you to understand the range for which your business will most likely sell.