9. Get an Appraisal

A Plus Business Brokers
17193 NW 242nd ST
High Springs, Fl. 32643
Cell: 352-443-1193 Fax: 352-528-3432

Appraisal Information

One of the most considered items on a seller’s list when he begins to think about selling is the market value of the business. Most business owners deal daily with providing a quality service for a fair price. They study it, go to school for it, talk, eat, and sleep it. Of course, they know the business of providing a good service for a fair price. After years of trial and error, why shouldn’t they? Then, once in their career or once in their lifetime they decide to sell their business. How in the world does an owner expect to know the market value of his business with little or no experience? Well, quite frankly, they usually don’t, with few exceptions! The market value may become what one buyer, usually local, is willing to pay for your business at a given point in time, if not valued by a Professional Business Appraiser.

Who is a Professional Business Appraiser?

A professional business appraiser is someone who has had training in appraising businesses plus several other considerations as noted below. A lot of CPA’s go by book value which is used in accounting but not necessarily appropriate for appraisal purposes. Some business owner’s think they are appraisers because they have their own formula as to what they think the business is worth to their company, not necessarily market value, but usually have no business appraisal training. Ultimately a buyer maybe a local pest control business and will try to decide what the price will be for your business. Especially if no one else finds out your business is for sale. Some owners and other buyers get your business information and can have a conversation with you about how you handle your business. Afterwards, they can make you an offer for as little as they think you will take. This is because you do not know the pest control business market so how are you going to dispute what they want to offer? Additionally, owners usually do not know how much most businesses sell for or the circumstances they were sold under when determining their offer. Was it a sale because of illness and the owner had to sell now or lose all of it? Was it because the IRS was getting ready to pad lock the door? Circumstances usually dictate the price of the sale unless it is a deliberate sale for any logical reason. Forced sale means a lower price under usual conditions. A Professional Pest Control Business Appraiser analyzes these circumstances and with the knowledge of what other businesses are selling for using several appraisal methods along with their experience in what the past sales have been, to determine a Fair Market Value for your business. Value for any business is all about transferring the profit from your business to another owner without it losing any momentum or value. If the buyer perceives a possible loss of profit he will probably offer less. If he perceives an increase he may be willing to pay more.

The Market Price Does Change.

A lot of details of market conditions determine how much and when it changes. This is the reason I strongly suggest Sellers should get at least two opinions, if not more, related to the value of their business. Do this “before” placing the business on the market for sale. Compare the business opinion values. See what everyone says. Just remember what it cost for their opinion and from what perspective the opinion giver is representing when giving you a value. There’s a lot of information gathering, and it’s time consuming. If you decide this is too much trouble and do not get complete financial and customer account details, you are asking the buyer to try to take advantage of you.

Appraisal Cost

If you would like to have a professional appraisal, regarding the value of your business today please see chart below:

Cost:

   Annual volume up to $ 250K appraisal cost $1200.00
Annual volume up to $ 500K appraisal cost $1800.00
Annual volume up to $ 750K appraisal cost $2200.00
Annual volume up to $ 1M appraisal cost $2500.00
Annual volume up to $ 2M appraisal cost $2900.00
Annual volume up to $ 3M appraisal cost $3400.00
Annual volume exceeding $ 3M please call: 352-443-1193

Make checks payable to:

A Plus Business Brokers, Inc. or Allen C Woodward

Each appraisal shall be sent to you in fifteen (15) working days or less under normal conditions from the date all documents are received, and the appraisal begins. Each appraisal will be done in order of receipt and or order requested by owner. All appraisals are to be paid in full before the work begins. For your convenience we also invoice via PayPal and can be paid by email online. If paying by check your appraisal will begin after your check clears the bank.

Conditions and Limitations

This Appraisal of Value is to be used strictly for the purpose of “determining the sale price of a business”. It is not to be used for property settlement of any kind unless so specified. Analysis and conclusion in this report are based in large part on the information supplied by the seller. Any significant errors or omissions from the information furnished will have a corresponding effect on the analysis and on the conclusion reached. No responsibility assumed for matters of a legal nature affecting the business appraised, nor is any opinion of title rendered. The analysis assumes a marketable title and has been made as though the property is free and clear of all liens and encumbrances except as specifically provided for in the report as noted in conditions of clarifications of the appraised value.

Submit Payment and Information to:

A Plus Business Brokers, Inc.
17193 NW 242nd Street
High Springs, FL 32642-9122

YOUR INFORMATION FURNISHED FOR THIS APPRAISAL IS 100% CONFIDENTIAL

Two years IRS tax returns. Profit and loss (P&L) for all months not included in the tax returns up to the present. Total amount of annual repeat revenue or contract work in each category. Number of accounts in each category, (pest control, termite, lawn and ornamental, or other)

Company Financial Information

Annual Net Revenue This Fiscal Year.
For Last Complete Fiscal Year:
12 Months Previous:
Please include a “Profit & Loss Statement” for the volume this fiscal year.

Most current year or 12-month period.
(A) Pest Control Annual Revenue % Of Total For last year – (estimated if necessary) Complete Year

Pest Control Service Annual Sales                                          Number of Accounts                                                               % of Gross Sales                                                                        $ volume per service
Residential Monthly Service Customers _ _ _
Residential Bi-Monthly _ _ _
Residential Quarterly Service Customers _ _ _
Semi Annual Service Customers _ _ _
Annual Service Customers _ _ _
Commercial Customers (P.C. Only) _ _ _
P.C. Miscellaneous Revenue (One time, etc.) _ _ _
Subtotal Pest control Revenue _ _ _
(B) Termite (Includes all Wood Destroying Organisms)
Termite Service Annual Sales                                                  Number of Customers                                                              % of Gross Sales                                                                        $ volume per service
Treating Revenue – – –
Fumigation Revenue Dry Wood Termites – – –
Clearance Letters – – –
Annual Renewal Revenue – – –
Bait Monitoring – – –
Miscellaneous Termite Revenue – – –
Other – – –
Other – – –
Sub Total Termite – – –
(C) Other
Type of Service Annual Sales                                               Number of Customers                                                               % of Gross Sales                                                                         $ volume per service
Lawn & Ornamental – – –
Other – – –
Other – – –
Sub Total Other – – –
Total Annual Revenue                                                                                                                                                                                                    = 100%

We will also need these items.

1. Number of accounts that exceed 8% of your annual volume.
2. A list of all equipment, office, treating, and vehicles, included in the sale; state a current market value.
3. Any special proprietary business expertise, patents, special training, or other information that is unique to your business.
4. Name address and phone number of the person who files your income taxes with permission to call him/her should it be necessary.
5. What % of total sales is commercial pest control?
6. Please give some thought to and include a list of any expenses that you have now that a new owner would not have when you sell your business. This is very important factor to determine the real value of your business. We call it SUC or sellers usable cash. Everyone runs their business differently and how you spend your money is your business. When determining the selling price of your business this money must be considered as profit as long as it is legitimate and provable.
7. List or describe any other information you feel is important and would have an impact on the value of the business.
Conditions and Limitations
This Appraisal of Value is to be used strictly for the purpose of “determining the sale price of a business”. It is not to be used for property settlement of any kind unless so specified. Analysis and conclusion in this report are based in large part on the information supplied by the seller. Any significant errors or omissions from the information furnished will have a corresponding effect on the analysis and on the conclusion reached. No responsibility assumed for matters of a legal nature affecting the business appraised, nor is any opinion of title rendered. The analysis assumes a marketable title and has been made as though the property is free and clear of all liens and encumbrances except as specifically provided for in the report as noted in conditions of clarifications of the appraised value.

 

Submit Payment and Information to:

A Plus Business Brokers, Inc.
17193 NW 242nd Street
High Springs, FL 32642-9122
Fax 352-528-3432