• Are there cost savings after purchase?
• Are there significant capital expenditures pending?
• Is there synergy with the seller?
• Is it perceived the integration will go smoothly?
• Are there substantial cross-selling possibilities?
• Will the cultures blend?
  
  

The Financials: By training and education, many business appraisers emphasize the numbers. They will look at the past, current and future numbers. They will consider all the basic financial figures such as:

• Growth rate
• Return on investment
• Gross profit percentage
• EBITDA percentage
• Industry metrics
• Debt to net worth
• Book value

Fundamentals: Business appraisers should also consider the company’s history, its management, products, distribution, etc. The following should also be seriously considered: multi-products, different markets, wide distribution and the quality of management.

Value Drivers: These are important business elements that are most often ignored or completely overlooked by business appraisers. However, they are very important to a potential buyer. • product differentiation • defensible position • technology • dominant market share • well-known brand(s) • cost advantage • proprietary customer