Businesses are flourishing in Florida. In recent years, it has ranked among the top states economically, according to outlets like U.S. News & World Report. Its strong GDP growth and thriving business environment make that success easy to see.
Operating a company in such excellent market conditions makes it a great time to obtain a Florida business valuation, especially when you’re considering an exit. What can you expect from the process? Read on.
What Is Business Valuation?
Definition and core concepts:
Valuation is the method of calculating a business’s value. A broker, certified public accountant, or certified valuation analyst (CVA) looks at metrics, internal factors, and external influences to determine its price.
Some of its core concepts include the specific ways to determine the value. In Florida, you’ll typically see brokers using these different methods of business valuation.
Asset-based valuation. Business valuation companies in Florida focus on the net value of a business’s tangible and intangible assets when they apply this method. By subtracting liabilities from the total asset value, the approach estimates how much the business would be worth if it were rebuilt exactly as it is.
Market-based valuation. A method that takes a broader view by looking at how a company measures up against others within Florida. For instance, comparing your business to similar ones across the state can offer valuable insights into its overall worth so you can arrive at its true value.
Income-based valuation. A method where business valuation experts look at future performance through forecasting. It helps estimate what the business could be worth down the line with current income as the basis.
A merger or acquisition is primarily when businesses need valuation services. What are additional reasons for performing valuations? Here are some common purposes:
Litigation
Estate planning
Business restructuring
Succession planning (estate and gift tax)
Compliance with regulatory requirements
Securing financing
Choosing a Business Valuation Expert in Florida
The importance of local market knowledge cannot be stressed enough, especially when your goal as a business owner is to get the most accurate business valuation in Florida. Since a company’s price fluctuates, partnering with a valuation firm offering advisory services backed by local expertise is highly advantageous. It is especially important if real estate property or the industry the company operates in is a huge value driver.
What are the credentials and certifications as well as the qualifications to look for in business valuation professionals? Generally, you should be looking for the following:
Accredited in Business Valuation (ABV) or Certified Public Accountant (CPA). Designations by the American Institute of Certified Public Accountants (AICPA).
Business Brokers of Florida (BBF) Membership
Certified Business Appraiser. A certification by the Institute of Business Appraisers (IBA)
Certified Valuation Analyst. An accreditation granted by the National Association of Certified Valuation Analysts (NACVA)
The appraiser should provide a budget-friendly and reasonable fee. The selected individual must effectively communicate their appraisal findings, both verbally and in a written report. Make sure to approach a Florida valuation company that caters to the size of your business. This way, you’ll get services tailored to your budget and scope.
Business Valuation Services in Florida
How are business valuation services performed in Florida? There’s no real difference between how calculations are performed in The Sunshine State and any other state. However, certain variables will change during business valuations in Florida.
What does the process look like?
The valuation process thoroughly assesses a business, examining its management, capital structure, projected earnings, and the market value of its assets.
In the U.S., business valuations are typically conducted by professionals with an Accredited in Business Valuation (ABV) certification, especially when seeking financing from lenders, investment bankers, or venture capitalists.
For a general understanding of your business’s worth, you can perform your own valuation using multiple methods to have an estimate before you engage with a Florida business valuation company.
What would be unique about business valuations Florida?
First, let’s take a hospitality business in Miami as an example. The city leads nationally in hotel occupancy and revenue per available room (RevPAR), with strong growth projected into 2025. If your business is within this industry, the calculations during the business valuation South Florida will likely apply higher multiples due to the booming tourism sector.
In Florida, divorce laws uniquely drive the need for Florida business valuation consultants in litigation support, ensuring equitable asset division. State laws require accurate valuations that reflect Florida’s solid economy for high-net-worth couples. Expert legal counsel, forensic accountants, and business valuation expert Florida ensure compliance, with valuations also vital for shareholder disputes and estate settlements.
Conclusion
Business owners need to see the value of working with experienced business valuation professionals in Florida. At the end of the day, accurate calculations and assessments by business valuation advisors Florida lead you closer to your goal, whether it’s for an exit or attracting investors for financing.
Do you need business valuation experts in Florida with experience in online business appraisal? Let WebsiteClosers.com brokers help you through it all. Contact us today!
