Here at Art of Business Valuation, Harvest Business, LCC, we evaluate businesses for a variety of reasons, including Small Business Administration (SBA) loans and Estate and Gift Tax planning. Here is a brief summary of a three recent business valuations by the business valuation firm done by Gregory Caruso, JD, CPA, CVA, lead appraiser.
Estate and Gift Tax: Home Nursing / Eldercare Business Valuation
The business is a franchise of home nursing and eldercare company with several locations. The company had good relations with several hospital systems, which make constant referrals, driving new customers to the business. On the personnel front, the two owners and three strong upper middle managers made a good management team. They ensure consistent timely staffing and care. At this time they needed an evaluation because one owner wanted to gift his part of the business to his children. The buy-sell agreement was being modified and new restrictions were evaluated for estimating the discount of lack of marketability (DLOM) and the minority interest discount calculations. The business valuation cash flow did have some issues around reasonably supporting owner cash flow add backs and these were favorably resolved.
SBA Business Valuation: Equipment Rental Company
The company primarily rents construction equipment, tent rental, and party and catering rental items. In general, these companies tend to be seasonal where summer presents stronger business and more income. This company experienced even more of that phenomenon, as it is near a popular summer beach resort. COVID-19 reduced tent and party rentals, but increased construction equipment rentals. Because of this, the equipment rental company appeared to have an almost typical year. The selling owner had several businesses and had put very little time into this company in recent years. This sale was a first step towards his retirement. The company was being purchased by a long term manager and the purpose of the business valuation was to support an SBA 7(a) acquisition loan.
Business Valuation: Plumbing, Mechanical HVAC Service
The company primarily provided HVAC service work to a large base of residential homes and some light office space in an exurban community. They had $6M in revenues and are a highly profitable company. Much of their business was made up of small service and equipment replacement jobs, with some service contracts. They are particularly effective in internet marketing systems and have good Google and related reviews. They also had a good employee situation with plenty of trained techs. The purpose of this valuation was for partial bank financing of a family transition.
Harvest Business, LLC also commonly called The Art of Business Valuation is an expert business valuation firm that provides business valuations nationally. Our lead valuator Gregory R. Caruso, JD, CPA, CVA, has performed hundreds and hundreds of business valuations and provided training and continuing education for leading business valuation, accounting, and legal programs. Your business value is worth our quality service and experienced business valuation judgment. If you have any questions or need a business valuation for any purpose reach out today.