Getting started with a business valuation is as simple as contacting NorthStar. We’ll start with a conversation about why you need the valuation, what you are trying to accomplish, how the process works, and the information we will need from you. We can also answer any questions you have about business valuation before you decide what type of analysis makes sense. If you are seriously considering selling your company, that conversation may lead to NorthStar’s no-cost, no-obligation VSA™. If you need a valuation for another purpose, we can discuss the appropriate paid business valuation service and what the process will involve.

Not necessarily. Most business valuations tell you what your company may be worth. They do not necessarily tell you whether the business is actually marketable and sellable. That’s a huge distinction: value vs. sellability. Every business has a value. Provided we have the necessary financial information, we can calculate an estimated value for just about any company. But whether buyers will actually want to buy that business at that value is a completely different question. That is exactly why NorthStar developed the Valuation & Sellability Assessment (VSA™). In addition to valuing the company, we dig deeper into the business, its operations, reputation, efficiencies, market position, and other factors that may influence how attractive buyers ultimately find it. So you do not just come away knowing what your business may be worth. You also gain a better understanding of how its sellability could affect that value when you take it to market.

At minimum, a business valuation requires enough financial and operational information to give us an accurate picture of how the company performs. There is a minimum amount of information we need, and then there is the amount we would ideally like to have to make the valuation as thorough as possible. We explain that distinction upfront so you understand how the information available to us may affect the resulting analysis. At minimum, NorthStar will generally want to review: P&L statements for the last three years, plus the current interim period Balance sheets for the same period Business tax returns for the last three years Sales by customer reports Accounts receivable and accounts payable aging reports Owner W-2s or payroll reports A complete list of furniture, fixtures, and equipment (FF&E) Once we review those initial documents, there will likely be follow-up questions and additional requests based on your specific business. The goal is to understand the financial picture as clearly as possible before determining value.

The cost of a business valuation depends on the type of valuation you need, the size of the company, and the amount of work required to complete the analysis. NorthStar’s VSA™ is a no-cost, no-obligation engagement for business owners seriously considering selling their company. For our paid business valuation services, the answer is: it depends. Certified valuations require more time, analysis, and documentation, so they generally require a larger investment. The size and complexity of the business also matter. A larger company will typically require more work to properly analyze and document. Generally speaking, NorthStar’s business market valuations range from $5,000 to $10,000, while certified valuations typically start around $10,000 and can reach $25,000. If you have a specific valuation need, contact NorthStar and we can provide a quote based on the type of analysis and report required.

Absolutely. NorthStar can use the same business market valuation techniques and procedures we apply for our sell-side clients when evaluating a business that one of our buy-side clients is considering acquiring. There is one caveat. When we are valuing a business for a prospective buyer, we are dependent on the information the seller is willing and able to provide. In some cases, getting every piece of financial and operational information we would ideally want can be difficult. That can affect the depth of the analysis. The more complete and accurate the information available to us, the more complete the business valuation can be.

You may need a paid business valuation when you want to understand your company’s value for a reason other than selling it. While NorthStar’s VSA™ is a no-cost, no-obligation engagement for owners seriously considering a sale, there are plenty of other reasons you may need to know what your business is worth. Those may include: Estate planning, Strategic business planning, Obtaining financing, Key person life insurance, Personal wealth management planning These situations do not necessarily require a certified valuation. Sometimes you simply need a detailed market valuation to understand the current value of one of your largest assets. NorthStar offers paid business valuation services for these situations based on the type of analysis and report you need.

The difference between a business market valuation and a certified business valuation generally comes down to the purpose of the valuation, the complexity of the analysis, and the resulting report. A business market valuation is typically designed to answer one primary question: What would this business likely sell for on the open market? A certified valuation is a more formal analysis generally used when the valuation needs to meet requirements beyond a potential sale. These situations may include litigation, divorce, partnership disputes, certain financing matters, or other circumstances where a more detailed and formal valuation report is necessary. At the end of the day, the reason you need the valuation should determine which type makes sense. If you’re trying to understand what your business could sell for, a business market valuation may be sufficient. If the valuation is being prepared for a legal, financial, or other formal purpose, a certified valuation may be appropriate.

Yes. NorthStar’s VSA™ is a no-cost, no-obligation engagement for business owners who are seriously considering selling their company. We operate on the honor system here. There is no obligation for you to sell your business after receiving the VSA™. The purpose is to give you a clear and informed picture of what your business may be worth and how attractive it may be to buyers. We simply ask that if you request a free VSA™, you are genuinely considering a sale if the valuation and market conditions make sense for you. If the numbers work and you decide you’re ready, we can talk about what comes next. If they don’t, you have better information to help decide what to do from there.

NorthStar’s Valuation & Sellability Assessment (VSA™) is our in-house business market analysis designed to give owners a clear picture of both their company’s market value and its sellability. On one hand, the VSA™ is a detailed financial and operational analysis of the tangible data behind your business. On the other, it is a unique and brutally honest assessment of the intangible factors that can influence buyer confidence. That second part is what makes the VSA™ different. NorthStar uses our proprietary Sellability Index to evaluate the marketability and attractiveness of a business, then incorporates that understanding into the black-and-white financial analysis. The resulting market valuation range can give you insight into what your business may sell for, the challenges you may face, the types of buyers you could attract, how long the process may take, and the deal structure you might expect. The goal is to prepare you for what the market may actually look like before you decide whether to sell. The fewer surprises we can eliminate on the front end, the smoother the process tends to be.

The most reliable way to determine what your business is worth is through a professional business valuation that considers your financial performance, market conditions, comparable sales, industry standards, and current buyer trends. The simple answer, of course, is that you’ll know exactly what it’s worth when a buyer buys your business! But we know that’s not really what you’re asking. There are any number of online valuation calculators where you can plug in some data and get an estimate. Your CPA may believe they can give you a “quick” number. And there’s always a friend on the golf course who has thoughts about what your company should be worth. But if you’re seriously considering selling your business, you need something more substantial. That’s why NorthStar developed its Valuation & Sellability Assessment (VSA™). The VSA™ looks deeply at your financial statements, personal expenses, market conditions, comparable sales, industry standards, and buyer trends. Then it goes a step further by using our proprietary Sellability Index to evaluate how attractive and marketable your business may actually be to buyers. It’s this combination of value and sellability that helps give owners a more complete picture of what they could expect in the market. NorthStar’s transactions have closed at an average of 98% of asking price.