ALOHA ASSOCIATES
Business Brokers
Valuation Services:

A business valuation analysis is crucial to a successful transaction!

    Determining the proper value for a business is crucial to a successful sale or purchase of a business.  

    For sellers, the most interest in a new business for sale will occur within the first few months of listing.  If the business is
    overpriced, potential buyers will not pursue the opportunity.  Eventually lowering the price will cause delays in the sale and a
    loss of bargaining power.

    For buyers, a business valuation analysis must be done prior to negotiating the terms of the sale.  Overpaying for a business
    will lead to cash flow problems that will critically affect the chances for success.

Our services:

    We have over 5 years of experience in preparing business valuations.  The process of preparing a business valuation
    analysis is as follows:   

Obtain Information

    We will meet with you to gather information about your business such as a description of operations, years in business,
    management structure, sales and expense information and future growth.   We will also obtain financial documents such as
    tax returns or financial statements from you or at your request from your accountant.

Analysis and adjustment of financial data

    Based on the financial documents and our discussions with you, we will analyze the financial statements and make
    adjustments to obtain a true picture of the performance of the business. Examples of adjustments are eliminating non-
    business and non-recurring expenses, adjusting assets and debts to actual value and adjusting revenue to reflect actual
    sales.  

Application of business valuation methods

    The adjusted financial data is analyzed under a variety of valuation methods including methods based on asset value, cash
    flow, gross sales and similar businesses sold in the past.  Each valuation method will produce a business value.

Determining a range of business value

    Based on the results of the valuation methods and our judgement, we will determine a value range for the business.

Reasonableness test

    As a final step we will scrutinize our value range under a real life scenario by projecting future cash flow to determine if there
    is enough cash flow to pay living expenses and the debt service for the purchase of the business.