• Phone
  • Mail
  • Home
  • About Us
    • Company Profile
    • Our Team
    • What Our Clients Say
    • Affiliations
    • IBBA Code of Ethics
    • Join ENLIGN Advisors
  • Listings
    • All Listings
    • Active
    • Coming Soon
    • Under Contract
    • MAIN STREET
    • LOWER MIDDLE-MARKET
    • Completed
  • Selling
    • Selling a Business
    • Selling a Business Tutorial
    • Seller FAQ
    • Download Free Whitepapers
    • Brokerage Transaction Terms
    • Seller Inquiry
  • Buying
    • Buying a Business
    • Buying a Business Tutorial
    • Buyer FAQ
    • Brokerage Transaction Terms
    • Virtual Deal Room
  • Services
    • Main Street
    • Mergers & Acquisitions
    • Business Valuations
  • Referral Network
  • Media Room
  • Contact
  • Schedule a call Blog   919-341-1100 Email
Click Here
Logo
  • About
    Company Profile Our Team What Our Clients Say Affiliations IBBA Code of Ethics Join ENLIGN Advisors
  • Listings
    All Listings Active Coming Soon Under Contract Main Street LOWER MIDDLE-MARKET Completed
  • Selling
    Selling a Business Selling a Business Tutorial Seller FAQ Download Free Whitepapers Brokerage Transaction Terms Seller Inquiry
  • Buying
    Buying a Business Buying a Business Tutorial Buyer FAQ Brokerage Transaction Terms Virtual Deal Room
  • Services
    Main Street Mergers & Acquisitions Business Valuations
  • Referral Network
  • Contact
919-341-1100
Click Here
  • Schedule a Call
  • Leave a Review
  • Blog
  • Email us
  • Live Chat
X Close
  • Home
  • About
    Company Profile Our Team What Our Clients Say Affiliations IBBA Code of Ethics Join ENLIGN Advisors
  • Listings
    All Listings Active Coming Soon Under Contract Main Street LOWER MIDDLE-MARKET Completed
  • Selling
    Selling a Business Selling a Business Tutorial Seller FAQ Download Free Whitepapers Brokerage Transaction Terms Seller Inquiry
  • Buying
    Buying a Business Buying a Business Tutorial Buyer FAQ Brokerage Transaction Terms Virtual Deal Room
  • Services
    Main Street Mergers & Acquisitions Business Valuations
  • Referral Network
  • Media Room
  • Contact

  • Schedule a call
  • Blog

  • 919-341-1100
  • Email

®All Rights Reserved 2003 - 2023

Blogs

Valuing the Business: Some Difficult Issues
Back 
Home | News & Events | Valuing the Business: Some Difficult Issues

Lorem Ipsum

News & Events

Valuing the Business: Some Difficult Issues

ENLIGN DEAL TEAM | 04/29/2015
Business valuations are almost always difficult and often complex. A valuation is also frequently subject to the judgment of the person conducting it. In addition, the person conducting the valuation must assume that the information furnished to him or her is accurate. Here are some issues that must be considered when arriving at a value for the business: Product Diversity – Firms with just a single product or service are subject to a much greater risk than multiproduct firms. Customer Concentration – Many small companies have just one or two major customers or clients; losing one would be a major issue. Intangible Assets – Patents, trademarks and copyrights can be important assets, but are very difficult to value. Critical Supply Sources – If a firm uses just a single supplier to obtain a low-cost competitive edge, that competitive edge is more subject to change; or if the supplier is in a foreign country, the supply is more at risk for delivery interruption. ESOP Ownership – A company owned by employees, either completely or partially, requires a vote by the employees. This can restrict marketability and, therefore, the value. Company/Industry Life Cycle – A retail/repair typewriter business is an obvious example, but many consumer product firms fall into this category. Other issues that can impact the value of a company would include inventory that is dated or not saleable, reliance on short contracts, work-in-progress, and any third-party or franchise approvals necessary to sell the company. © Copyright 2015 Business Brokerage Press, Inc. Photo Credit: DuBoix via morgueFile
< Back

  • International Business Brokers  Association
  • M & A Source
  • Carolina-Virginia Business Brokers Association
  • American Business Brokers Association
  • Association Of Professional Merger & Acquisition Advisors
  • Business Brokerage Press
  • The Financial Planning Association®

Enlign

Navigation

  • Company Profile
  • Selling A Business
  • Buying A Business
  • Main Street
  • Media Room
  • What Our Clients Say
  • IBBA Code

Listings

  • All Listings
  • Active
  • Coming Soon
  • Under Contract
  • Completed

Extras

  • Site Map
  • Terms & Conditions
  • Privacy Policy
  • Share This Page

Contact

Enlign

Address

2009 Caminos Drive
Raleigh, NC 27607

Phone

919-341-1100

Email Us

® All Rights Reserved 2003 - 2023