"Asset Value" Business Appraisals – (Level 1)

Purpose: Asset Value appraisals determine the total value of fixed assets plus intangible assets, and disregards current assets, liabilities, and other balance sheet items. It is the value by which most small businesses are sold as an "asset sale" as opposed to an "equity sale"...

Note: Asset Value Appraisals do not reflect equity value, only asset value.

These are "complete business appraisals" and average about 90 pages. They can be used for:

• planning a sale,
• buying a business,
• insurance purposes,
• etc.

Description:
Our Level 1 appraisals use several approaches to value. They include analyses of comparative sales of other similar businesses, and an investment analysis to determine intangible asset value (goodwill). They can be used by buyers, and sellers, lenders (especially in conjunction with SBA loans). They are also suitable for third party professionals who are not intimately involved with the business for purposes of estate planning, insurance, etc. The report will meet USPAP standards for a "Complete Appraisal Report" indicating no departures from USPAP standards.

Level 1 Appraisals Are Not Suitable For:
Litigation, IRS audits, valuation of minority interests, or estates where even more extensive documentation and reconciliation with IRS Revenue Rulings are required.

Level 1 Appraisals contain:

• Narratives (description of business, history, markets, products, etc.)
• Comparative Sales analysis (comparisons with ratios from sales of similar businesses)
• Investment Analysis – used to determine intangible asset value (goodwill)
• Reconciliation of P & L statements with tax returns (needed for SBA financing)
• Appendix showing source data for financial analysis, photographs, sales promotion collaterals, and other relevant information.

Standards:
USPAP 9 & 10

Time to Complete:
5-10 Days

Price By Quote

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Or call 1-805-646-4960 to order.

For answers to any other questions you may have, visit our Frequently Asked Questions (FAQ) page, click here to contact us, or call us 1-805-646-4960.

American ValueMetrics
1585 South Loma Dr, Ojai, CA 93023
Phone: 805-646-4960 Fax: 805-715-7024

business appraisal and valuation