What Is a Business Valuation?

In essence, a business valuation puts a dollar figure on your business. Whether you’re looking to buy or sell a business, getting a defensible valuation that accurately reflects its transferable value is foundational to the process.  A market-based price helps generate more interest, can put the buyer and seller on the same page, and will stand up to the scrutiny by a lender’s underwriting process. These days, most SBA and conventional loans also require an independent business appraisal firm to confirm the price. If their analysis comes in lower, it can threaten a deal and prevent you from getting to the closing table.

With over 35 years of experience and over a hundred successfully closed transactions, Sam Goldenberg & Associates has honed its process. We take a sophisticated, integrated approach. It’s significantly more complex than simply look at numbers on a balance sheet. While there is more to the process than applying “rules of thumb” multiples, multiples nonetheless have a role to play. We use multiples that are supplied and verified by SBA lenders and business appraisers. We select for the similar business sector, size and when feasible, the same geographical area. We also bring an understanding of the challenges and opportunities of the New Mexico business climate, an awareness of what business buyers are looking for, and an ability to discern the factors that help to sell a business.

For deeper insights, learn about eight factors that influence sellability.