Plethora Businesses

Did You Know?

There are hundreds of methods to valuing a business. However, many are unproven, obsolete or ineffective in today's rapidly changing business environment.

Let Plethora’s experienced appraisers work with you to value your business. Plethora’s valuation team uses a blend of traditional and proprietary methods. All of our methods have been upheld by state and federal courts throughout the United States, the IRS, and lending institutions including the World Bank. All of our methods, whether proprietary or traditional are in compliance with federal law and appraisal industry standards. Spending money on an appraisal that doesn’t comply with the law and industry standards is the same as throwing your money out. Remember federal regulations require that a business valuation or equipment and machinery appraisal for any purpose look to multiple methods and approaches.

Did You Know?

That most business brokers will determine the value of your business by using a single obsolete method of determine your purchase price?

Most business brokers determine the sales price of a business by looking at the industry your business is in and multiplying your cash flow by that multiplier. This method often hurts business owners. It was created in the 1970’s and times have changed so drastically that it no longer is an reliable method. When the industry multipliers were created, they looked at multiple factors. One of the most important of those factors was the interest rate a buyer would pay on a loan or carry back note. At that time, interest rates on business loans and carry back notes were in the high teens resulting in a lower multiplier. Business brokers and uninformed buyers still use these exact same multipliers resulting in a lower sales price for you. In addition, these multipliers don’t take into account how different two businesses can be within the same industry, often resulting in an inaccurate value for your business. Make sure you sell your business for the right price that can be easily justified to buyers. Call Plethora Business and Machinery Appraisals to aid you in obtaining the best price for your business.

Appraisal Synopsis

Regardless of the reason, if you are interested in having a valuation performed for your business or on your machinery and equipment; contact us as one of our representatives will gladly explain the structure and process of a business valuation. All calls will be held strictly confidential.

There are several steps in the valuation process.

Step I
Free Consultation

A Plethora Valuation Team Member will meet with you to discuss your valuation needs and the appraisal process. This meeting is complimentary and completely confidential.

Step II
Engagement & Information Gathering

Client Signs & provides Plethora with the Engagement Agreement and retainer check;
Client provides Plethora appraiser with required documentation;
If Business Valuation:
Client works with Plethora appraiser to discuss and complete our proprietary Valuation

If Equipment Appraisal:
Appraiser will come to your place of business and examine and photograph the equipment

Step III
Research

Our valuation department will obtain extensive industry, geography and comparable sales data for business valuations or obtain comparable sales data for equipment valuations. We have access to some of the country’s largest and most extensive equipment and comparable private business sales databases. Our researchers have years of experience in industry and geographical research and will ensure that your valuation contains the most accurate current information available.

Step IV
Analysis

Our valuation team will analyze our research, your business questionnaire, and the financial and business documents you have provided us (or the specifics regarding your machinery in the case of an equipment and machinery appraisal) and begin the actual valuation.

Step V
Comprehensive Business Valuation

Our valuation team will take all of the research and analysis that we have assembled and apply it to our proprietary valuation methods in compliance with federal law. After reviewing the results of at least ten different methods, our appraisers will determine which methods are most appropriate to your circumstances and use those to determine the ultimate value.