Valuation

25+ Years of Business Valuation Expertise

A business valuation is not a single number. It is a range — shaped by several concrete factors that every buyer will evaluate, such as:

• Adjusted net income / Seller's Discretionary Earnings (SDE) — SDE is calculated by adding back the owner's salary, depreciation, amortization, and any personal expenses run through the business.
• Consistency of earnings — Is revenue trending up, flat, or declining? Buyers pay a premium for stability and growth.
• Industry type and discretionary cash flow — The type of industry, along with the amount of discretionary cash flow, will affect the valuation.
• Depth of management structure — The complexity of management structure will positively affect the valuation of the business. A business that can run without the owner at the center commands a stronger offer.
• Equipment, inventory, and other assets — Tangible assets included in the sale affect both value and how the deal is structured.
• Customer concentration and retention — Heavy reliance on a single client or account creates risk that buyers price into their offers.
• Current market conditions and recent comparable sales — What similar businesses have actually sold for assists in setting the realistic range.

At Business Planning Advisors, Inc., we work with a network of approximately 800 business brokers across Florida. We use verified closed transaction data to price businesses accurately.

All of our client relationships are managed personally by our Principal and Founder, Richard Zarzecki — a former CPA with 20+ years of accounting experience, a former business owner, M&A advisor and a licensed Florida business broker with 25+ years of transaction experience. He starts every valuation by asking the seller what they think the business is worth. 

When you work with Richard, you’re getting a business valuation from someone who’s been on both sides of the table.

Get a Free, Confidential Valuation