Business Valuations

Why Hire a Certified General Appraiser?

PMSI can prepare a professional valuation of your business to determine its fair market value. The appraisal will ensure the business is priced appropriately which nornally leads to a quicker sale.

A professional business appraisal is an invaluabale tool to help set the asking price. It also provides a realistic benchmark for the seller to use in assessing multiple offers.

What Appraisal Services Does PMSI Offer?

PMSI is a certifed general real estate appraiser in Minnesota, Wisconsin and Iowa. Unlike most business appraisers, we can appraise real estate and well as your ongoing business.

Every appraisal PMSI prepares is in compliance with Uniform Standards of Professional Appraisal Practice (USPAP).

We can appraise any size of petroleum distribution business. And, we can appraise the entire business or any combination of its components, i.e. real estate, buildings, equipment, good will, etc.

How Much Is My Business Worth?

There are a number of methods used to calculate the value of a business such as Capitalization or Income Approach, Market or Comparable Sales Approach or Cost Approach.

PMSI understands these various calculations of value as well as utilization of typical valuation guidelines such as cash flow multiplier, price per gallon, price per gross margin, price per square foot building area, etc. and will help you understand the application of each to arrive at the appropriate business value.

Some of the factors considered when establishing a fair market value for a business through a professional appraisal include:

Valuing a small business generally is done on a cash flow basis. Key metrics for the business might include business profit, owner’s salary and benefits, depreciation, inventory on hand and other non-cash items.