If you are a business owner,
buyer, or professional advisor:

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Frequently Asked Business Valuation Questions

About Business Appraisal and Business Valuation Services

How much is a business worth and why?
Understanding how to valuate a business and give an accurate business appraisal is a difficult and time consuming process.  There are many different factors that can be attributed to the valuing of a business; however, the ultimate value of a business is what a buyer will pay for it.

Since our  business is based solely upon online communication of information, it is our duty to ensure all customers that we will provide the most accurate business appraisal possible.  By using our business valuation calculator to determine the value of a business, you are reducing the risk of making a bad decision on its sale.  We strive to educate our customers on the factors affecting the financial valuation of the business, so they can maximize the fruits of their labour.

We understand that your business is very personal and that many hours of hard work and careful planning have gone into building your business into a success.  This is why we feel it is very important for business owners to know how much they can receive through its sale.  If you understand what factors are decreasing the financial valuation of the business and what factors are increasing the financial valuation, you can adjust your business in a way that maximizes the value of your business, for sale purposes.

How much do business valuation services cost?
The cost of one company valuation performed by an accredited professional business valuator can range from a minimum of $1500 to upwards of tens of thousands of dollars.  Determining the cost of valuing a business is dependent on the size and complexity of the business being evaluated, as well as any fundamental factors that may affect the business value:
  1. Business Cash Flow
  2. Industry Sector
  3. Competition
  4. Buyer Market
  5. Employee Skill Level
  6. Customer Base
  7. Owner Involvement
  8. Revenue
  9. Age of Business
  10. Availability of Vendor Financing
  11. Profitability Trend
Our business valuation services, located on our pricing page, cost between $33.95 for 48 hours of use and $159.95 for one year of use.  This allows for flexibility in your business valuation calculation and can allow for more than one business to be evaluated in the time indicated.  Our business valuation service is designed to give you the most accurate business valuation appraisal for a very minimal cost.

Why should I use your business valuation software instead of valuing a business on my own?

As mentioned in an earlier question, valuing a business can be very difficult and time consuming.  For a business owner to calculate the financial valuation of the business, many factors need to be determined, perhaps some of those the business owner may not even know about.  This could result in the undervaluing, or the overvaluing of a business, which has many inherent problems.

A very good example of how the undervaluing and overvaluing of a business can affect the business owner is in setting a price for a business once it has been determined that selling is the owner's goal.

It has been found that many business owners make the mistake of setting a list price that is either too high or too low for their business, which endangers the realization of their company's full potential. 

  • Setting a list price for a business that is too high can result in the business not being sold for a long period of time; sometimes not at all.  If the business owner eventually adjusts the price to how the market is responding, the deal will often be tainted with the view that something is wrong with the business or that the owner is desperate.
  • Setting a list price for a business that is too low can often result in the Business Owner not realizing the full benefit of their investment, ultimately losing out on the true business value.

It is for this reason that enlisting our business valuation services is in the best interest of any business owner.  Our business valuation software can help determine value for business owners who are unsure of how to valuate a business on their own.  Our company valuation software will also help each business owner through the process so they can fully understand how certain aspects of their business affect the business appraisal.  This will ultimately give the business owner important information that they will need when the opportunity comes along of an individual wanting to buy an existing business.

Why is it important for me to understand how to valuate a business and how the company valuation was formulated?
As mentioned in the previous question, business owner's often make an inaccurate company valuation that is either too high, or too low for the actual business value.  Our business valuation software is designed to help each customer learn how to value a business, so they can potentially adjust certain aspects of their company that could maximize the business value when selling is decided upon.

For a business person who wants to retire or find new business ventures, it is important to know the estimated amount of money that will be received upon the sale of the business.  If this amount of cash flow is insufficient, it would be better to know prior to the sale of the business, because it will allow for the necessary company changes that will potentially increase the cash flow for a sale later on.

We want to ensure that each business owner knows what they have going into a sale and what they could potentially have coming out of a sale.  Why not understand how to maximize the potential value of your business when the opportunity for an increased understanding of your business and company valuation is inexpensively available through Business-Valuations.biz.?

I do not have a strong financial background and do not want to waste my money. Will this site be easy to use and help me understand the business valuation services and business valuation methods?
The business valuation calculator on this site has been designed so the average person can successfully complete a company valuation. Each page and each question has extensive help functions to walk you through the process so that you can easily understand all of the factors involved in valuing a business.

You do not have to worry about wasting your money, because the company valuation software on this website is very inexpensive to use, unlike a certified business appraiser, whose cost is enormous.  Whether it is a small business valuation, or a large company valuation, our system is designed to help you at a cost-effective price based around how much time you need on our system.

What if I do not complete the company valuation in one sitting?
Your access to the company valuation calculator is time-oriented.  This means that you can come back and finish the valuation at a later time, once you have looked through the company valuation process and understand what is needed for you to successfully complete a business appraisal.

Privacy is an important issue to me. How can I be sure that all of the information I enter into the business valuation calculator is secure and not stored anywhere?
We do not store any information on the business valuation being performed IN ANY MANNER WHATSOEVER. Business-Valuations.biz. is built on a foundation of ethics and integrity.  We will not compromise our standards and provide strict instructions to our developers not to store any information.

The credit card information entered on our site for the use of our business valuation services is 100% secure. This site uses PayPal, who are very well known and are a third-party,  credit card processing company. PayPal does not even provide this information to Business-Valuations.biz. For more information on PayPal, you can click on the following link: http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/policy_privacy-outside .

Our goal as a business appraiser is to ensure complete satisfaction with our valuation services, while keeping our clients' information absolutely secure.

Am I required to download business valuation software onto my computer?
NO.  It must be made very clear that downloading software of any kind puts your computer at extreme risk of being infected by a virus.  Due to this risk, the business valuation calculator functions on-line, in real-time. We DO NOT DOWNLOAD cookies, or our company valuation software onto your computer.  This is a great benefit for all users, because not only do you escape the risk of being infected by a virus, but the variables for our business valuation software are being updated continuously, thus providing you with the latest and most up-to-date information, without the hassle of downloading again.

Who are the users of this website?
A large majority of our customers are business owners who want to learn how to valuate a business, while working with our guided business valuation software to determine a financial valuation for their businesses. We also have many customers who are looking to buy a business, or multiple businesses and use the business valuation calculator to 'benchmark' a business value.

Other customers are often accountants, attorneys, bankers who are primary advisors to business owners, and real estate professionals such as business brokers, who have many clients throughout a year that require a business valuation.  These customers often acquire an annual membership so they can help all of their clients within the year by using our cost-effective business valuation resource.