Small Business Valuations
Done Right!



NJ Business Valuations PC
The Small Business Valuation Expert

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We specialize in valuing small, owner-operated businesses with annual sales of less
than $5 million. In fact, over 40% of our valuations involve businesses with annual
sales of less than $500,000. Over 60% of our valuations are related to the buying or
selling of a business, and are used to make critical decisions like: whether to buy or
sell, how much to offer or accept, and how much to lend. In these situations,
valuations must be realistic and reasonable to be of any value.

Small, owner-operated businesses are different than larger companies. Obviously,
they are smaller (revenue, assets, employees, locations, territories, etc.) and they
operate according to a unique agenda set by their owner(s). Although general
valuation concepts and theories still apply, the data and methods used must be
relevant and adapted to accurately value a small business. Unfortunately, many
valuation firms apply the same data and methods they use for larger companies.
   

How to Tell if a Small Business Valuation is Done Right 

• Is it performed & signed by an experienced CPA who is Accredited and/or 
Certified in Business Valuation, and has lots of valuation experience? 
• Is it performed by a firm that specializes in valuing small businesses? 
• Does it follow the Statement on Standards for Valuation Services (SSVS)
published by the American Institute of CPAs?
• Does it apply methods from all 3 valuation approaches - market, income & asset
(cost)?
• After reviewing the report, do you understand what was done and why? Does it
make sense?
• Is it based on reliable data from privately owned businesses, NOT large public
companies that have nothing in common with small, owner-operated businesses
• Is it based on actual business results NOT unreliable, low-quality projections
prepared just for the valuation?
• Does it use a “real-world” small business buyer’s perspective, NOT a mythical
investor
• Does it provide a realistic, reasonable value?
• Is it reasonably priced - what good is it if you can’t afford it?    

Business Value Calculations

Anyone can afford to find out what a business is worth by using our Business Value Calculation (BVC). We perform widely used valuation methods to calculate the value
of a business and present the results in a professionally prepared and signed report. The results are shown as a range of values.

Our BVC is a calculation engagement, as that term is defined in the Statement on Standards for Valuation Services (SSVS) of the American Institute of Certified Public Accountants. We perform the calculation procedures described below. The estimates of value that result from a calculation engagement are expressed as
calculated values. A calculation engagement does not include all of the procedures required in a valuation engagement, as that term is defined in the SSVS. A valuation
engagement might produce different results. Calculation engagements are not intended to be used for litigation purposes or submitted to government agencies like the SBA or IRS.

We summarize earnings data from the previous 3 years, calculate value using 5 widely used methods, and report any industry rules of thumb. We need: 1) Federal income tax returns (with balance sheets) for past 3 years, 2) Current year-to-date P&L and balance sheet (if available), and 3) List of any non-recurring (unusual) or non-operating (non-essential or personal) expenses during periods covered by the
previous items.

The fee for a Business Value Calculation is $499, payable in advance.

We will complete your BVC report within one week of receiving information and fee.

Sample Report
Agreement

Standard Business Valuations

Our Business Valuations follow the Statement on Standards for Valuation Services (SSVS) of
the American Institute of Certified Public Accountants for valuation engagements.

We perform a thorough financial analysis of the business, and analyze the condition of and
outlook for the industry and the economy in general. We use methods from all 3 valuation
approaches (market, income & asset) to reach our conclusion. We provide an extensive report
detailing and explaining what we did and why we did it.

Our Business Valuation reports have been accepted and used in a number of litigation cases
involving estates, divorce, wrongful death, and shareholder/partner disputes. Our Business Valuation reports also meet the requirements of the Internal Revenue Service (IRS), and we are a “qualified source” of business valuations for the Small Business Administration (SBA).

We need 3 years of financial statements and/or tax returns plus other financial information
like: listings of receivables, payables, inventory, and fixed assets. We will also need documents like real estate leases, loan agreements, articles of incorporation, and buy-sell agreements. We provide a documents request list at the beginning of every valuation engagement.

Our fee starts at $1,500 for businesses with annual sales less than $1 million. Download our Business Valuation Services Brochure for a detailed fee schedule.

Our normal turnaround time is 2 to 3 weeks from receiving a 50% retainer and all requested information. Expedited service is available for an
extra charge. 

Sample Report

Other Services

Exit Planning
We strongly believe that business owners should start planning how they wish to exit their businesses long before they actually intend to leave. Getting an objective, professional opinion of what a business is worth is one of the most important initial steps. We also work with the owner’s other advisors to draft and implement an exit plan that often contains strategies to
maximize business value.

Value Building
We work with business owners and their advisors to determine the key value drivers in their businesses, and how to improve them. Owners can monitor their progress by erforming periodic valuations.

SBA Lender Program
We offer a special flat-fee of $1,495 for business valuations required for SBA loans. Pleas visit our SBA Business Valuations website.

Buy-Sell Agreements
We provide the following services related to buy-sell agreements: 1) review and critique existing
agreements; 2) assist in drafting new agreements; and 3) perform business valuations required
under the terms of the agreement.

Litigation Support
We provide the following services in support of litigation involving matters related to business
valuation: 1) perform business valuations; 2) serve as a consultant; 3) provide expert testimony;
and 4) review reports prepared by others. David E. Coffman has been recognized as an expert in
business valuation, and has testified in a number of counties throughout Pennsylvania and New Jersey.

Liquor License Valuations
We provide valuations of PA & NJ liquor licenses. Our valuation reports have been used to substantiate the value of liquor licenses for litigation and lending purposes.

Sample Report
Agreement

Contact

Email: dave@njbusinessvaluations.com 
Phone: 732-250-6250 
NJ Office: Seaside Park, NJ
Mailing Address:
6059 Allentown Blvd - 589
Harrisburg, PA  17112

Resources

Business Value Calculation
Sample Report
Agreement

Business Valuation
Sample Report

SBA Valuations

Liquor License Valuation
Sample Report
Agreement