The MicroValuation is an affordable way to learn what your business is worth. It was created out of the need for an inexpensive way to provide Buyers and Sellers with a purchase price for any given small business. These MicroValuations, also knows as a Calculation of Value in the world of business valuation, have limited uses. MicroValuations, as we call them, can be created with limited time and can be done inexpensively. It is an incredible value at $599.00.
They say that necessity is the mother of invention and so it is here. Over the span of a 30 year career in selling and assisting in the sales of hundreds of businesses and in valuing thousands more, Lance Schmidt , CVA, CBI, CBB, and former CPA, saw the need for an inexpensive solution for valuing small businesses. Mr. Schmidt was tired of not being able to meet the needs of the public, especially small business owners and their desire for a fast and inexpensive way to determine the value of their business and for Buyers to verify that value. Consequently, in 2015, MicroValuations was created to fill that need.
The MicroValuation is for small business owners (revenue $3 Million and under) that would like to know the range of values and a final averaged value of their business in order to determine if it's a good time to sell or transfer business ownership. Buyers have similar but different needs. With the MicroValuation, Buyers can confirm whether or not the asking price of a business is reasonable.
A MicroValuation, as defined here, is NOT a USPAP (Uniform Standard of Professional Appraisal Practice) Valuation. A USPAP Valuation is required for IRS gift & estate tax purposes, the IRS, Bankruptcy and Court cases, divorce cases or for lending purposes and is much more extensive and costly. Additionally, for larger businesses or companies that are more complex, a MicroValuation may not suffice. A USPAP Valuation may take anywhere from 30 to 200 hours (or even more) to develop and cost $3,000 to $50,000 plus.
The MicroValuation utilizes a published reference source known as the Business Reference Guide (BRG), published by Business Brokerage Press and two databases of sold businesses known as Bizcomps founded and published by Jack Sanders, and...Read More
Generally, a MicroValuation will include nine total values. Three values will be based upon SDE for the subject business provided by using the multiple of SDE from the BRG, Bizcomps and DealStats. Then an average of these three values is created...Read More
Thus eight results, four based upon SDE and four based upon Revenue (if all eight are available) are provided in tabular form in two separate Excel spreadsheets (one for SDE & one For Revenue). Then the selected results from each of the two Excel spreadsheets are averaged for ...Read More
A limited narrative is provided explaining the final Calculation of Value and any thoughts that Mr. Schmidt may have on the business. A brief explanation of a sentence or two (if necessary) will be provided on each result from the three public sources. Additionally, definitions ...Read More