Tag: Asset Value

Understanding Real Estate as a Financial Asset

Posted on by Brad Mewes

Real estate plays an important role in any business. As a significant long term asset, real estate represents a major financial investment. Whether it is owned or leased, real estate is one of the largest fixed expenses for many businesses.

Unfortunately many owners do not give enough thought to the role that real estate plays in their business strategy. Whether your plan is to stand pat, buy, or sell, the financial management of real estate plays a significant part in that strategy.

But many owners do not understand how outside parties view real estate and the implications that may have financially and strategically. […]

3 Reasons MSO’s Know Exactly What Your Business is Worth

Posted on by Brad Mewes

A colleague of mine was recently approached by one of the Big 4 inquiring about his business. After a few brief conversations around his financials they came back to him and offered him a very specific number to buy his business.

He remarked to me, “They knew more about my business and what it was worth than I did. I had no idea.”

Ask 5 business brokers what your business is worth and you’ll get 5 responses. Ask 5 investment bankers and you will get 25 responses.

How do the MSO’s know exactly what your business is worth? How do you value a business?

There are three common ways I see collision businesses valued: by discounted cash flow (DCF), the multiple method, or by asset value.

Let’s break each one down. […]