• Mergers & Acquisitions
  • Business Valuations
  • Growth & Exit Strategies

Business Valuation Services

Establishing the Fair Market Value of your business is the first and most critical step in the sales process. It is key to optimizing the value you realize from the sale. It will impact how long it takes to sell your business and will influence the range of buyers interested in your business. Fair Market Value is impacted by many factors including but not limited to:

  • The underlying financial fundamentals of the business
  • Overall competitive position of the business in its industry and local market
  • The number of similar businesses for sale
  • The deal structure - owner willingness to finance
  • The number of buyers interested in the business
The value of your business and the price must be justifiable to potential buyers. An independent third party evaluation will assure that the price presented to buyers is believable, reasonable and well positioned against comparable businesses available in the market.

Who Will Do the Market Value Analysis for My Business?

Fidelity Business Partners has relationships with several national business valuation firms and local valuation professionals. All specialize in business valuations for small and mid market companies and can provide valuations for a range of purposes, including to:

  • Sell your business at the Fair Market Value
  • Provide a lender with Fair Market Value information for a business loan
  • Plan for a merger, acquisition or stock offering
  • Develop an estate plan or tax plan to protect your wealth
  • Transfer the business into a trust
  • Create a succession plan
  • Determine the value of assets and liabilities for a divorce settlement
  • Assist attorneys in litigation
  • Settle an insurance claim
  • Set up an Employee Stock Ownership Plan (ESOP)

Fidelity Business Partners will work with you to gather and package all the pertinent information for the firm you select. A certified business valuation professional will develop the valuation. It will assure a fair price for your business based on:

  • Rigorous asset-based, income-based, market-based and proprietary valuation methods
  • An unparalleled database of business comparables at the national and local market level
  • A recommended deal structure and a justification of the price for the buyer
  • A valuation format geared to the application requirements of commercial and SBA lenders

Some statistics:

In the business brokerage industry on average, businesses will sell at only 70% of the listing price. Professionally valued companies sell at 90% of listing price.

Industry averages indicate that only 30% of businesses listed go to closing. Professionally valued companies close over 75% of the time.

©2003 Fidelity Business Partners, LLC
PO Box 312, Basking Ridge, NJ 07920
908-953-0844 Fax 908-953-0848
e-mail: Partners@FidelityBp.com