Annual Business Appraisals
Customized Appraisals to MaximizeYour Exit Strategy
Planning your future sale starts with understanding your current value.
BizWorth’s annual appraisals ensure financial clarity and credibility, positioning your business for a profitable sale.
Why Annual Business Appraisals Matter for Future Sales
Obtaining an annual business appraisal is essential for small businesses planning to sell. It offers several key benefits:
Demonstrate Financial Health
Show potential buyers your business’s financial stability and build confidence in its long-term viability.
Enhance Credibility with Buyers
Position your business as a strong investment opportunity by proving your financial management and operational strength.
Improve Access to Financing
A business valuation prepared by a certified appraiser helps secure better loan terms, making your business more attractive to buyers.
Plan for Growth
Provides a roadmap to optimize your operations and increase your business’s value before putting it on the market.
Demonstrate Financial Health
Show potential buyers your business’s financial stability and build confidence in its long-term viability.
Enhance Credibility with Buyers
Position your business as a strong investment opportunity by proving your financial management and operational strength.
Improve Access to Financing
A business valuation prepared by a certified appraiser helps secure better loan terms, making your business more attractive to buyers.
Plan for Growth
Provides a roadmap to optimize your operations and increase your business’s value before putting it on the market.
Comparable Private Transactions Method
Compares your business to recently sold companies within your industry, offering a market-based valuation that helps justify pricing when selling.
Capitalization of Earnings Method
Establishes a value based on current earnings, which is crucial for demonstrating your business’s financial strength to potential buyers
Multi-Stage Growth Method
Projects future cash flows during different growth phases, showing how your business can continue to grow post-sale.
Discounted Cash Flow (DCF) Method
Estimates future cash flows and discounts them to present value, helping buyers see the long-term sustainability of your business.
Adjusted Net Asset Value Method
Adjusts the value of your assets and liabilities, giving buyers a clear picture of your company’s worth.
Accurate Annual Appraisals in 3 Easy Steps
A reliable annual business appraisal is essential for preparing to sell your business. Here’s how we streamline the process:
Step 1: Data Collection
We gather key financial documents like profit and loss statements, balance sheets, and tax filings, ensuring a true picture of your business’s financial health.
Step 2: Normalization and Adjustment
We adjust your financials to reflect non-recurring expenses, highlighting your core profitability and improving your business’s appeal to buyers.
Step 3: Benchmarking and Valuation
We compare your business to industry competitors, delivering a detailed appraisal that ensures buyers can trust your financial stability.
Growing Businesses (>$400,000 Revenue)
Standard Annual Business Appraisal Report
Are you a growing business with over $400,000 in annual revenue looking to prepare for a future sale?
Our Standard Annual Business Appraisal Report provides:
- A detailed valuation summary
- Multi-stage growth method
- Income approach & capitalization of earnings method
- Sales, SDE, & EBITDA multiples
- Industry benchmarking
Why Choose Our Annual Business Appraisal Report?
Tailored for Businesses with $400,000+ in Revenue
Our report ensures that growing businesses are well-positioned for a successful sale.
Fast Turnaround (2-5 Days)
We understand the importance of timing, especially when preparing your business for sale. Our quick turnaround ensures you’re ready for opportunities.
Prepared by NACVA Certified Appraisers
Trust in the reliability of our certified appraisers who provide accurate valuations based on your business’s unique needs.
6 Valuation Methods
By utilizing six valuation methods, we provide a comprehensive picture of your business’s worth and financial viability.
How This Report Benefits Your Growing Business:
Demonstrates Financial Stability
Larger federal contracts demand a high level of financial stability. This report shows federal agencies that your business is capable of fulfilling those contracts with confidence.
Secures Better Loan Terms
As your business grows, you may need additional capital. Lenders are more likely to provide favorable terms when they see a clear, professionally prepared valuation.
Strengthens Your Contract Bids
A detailed appraisal makes your bids more competitive by showing federal agencies that you have the financial resources to meet the demands of government projects.
Supports Strategic Growth
With clear financial insights, you can make informed decisions about scaling your business, navigating new opportunities, and ensuring long-term success.
Small Businesses (less than $400,000 revenue)
Essentials Annual Business Appraisal Report
For small businesses with less than $400,000 in annual revenue, our Essentials Annual Business Appraisal provides the insights you need to prepare for a future sale
This 18+ page report includes:
- Valuation summary
- Sales & SDE multiples
- Adjusted financials
- Hand-picked business comps
Why Choose Our Essentials Annual Business Appraisal Report?
Tailored for Small Businesses with <$400,000 in Revenue
Specifically designed to help small businesses prepare for a future sale.
Fast Turnaround (1-6 Days)
We provide quick, reliable appraisals to ensure you’re ready for the next steps.
Prepared by Certified Appraisers
Trust in our appraisers to deliver accurate valuations reflecting your business’s unique financial needs.
3 Valuation Methods
Practical techniques offer a clear picture of your business’s value, ensuring you can confidently approach the sale process.
How This Report Benefits Your Business:
Demonstrates Financial Health
Shows potential buyers that your business is financially stable and ready for sale.
Improves Loan Access
A clear, professionally prepared valuation helps you secure better loan terms, making your business more attractive to buyers.
Supports Business Planning
Reliable financial insights allow you to make informed decisions about growth and future opportunities, increasing your business’s value before sale.
Certificate of Financial Stability (included)
BizWorth offers a Certificate of Financial Stability, a comprehensive analysis of your company’s financial health.
This certificate is based on a thorough review of key financial metrics, such as liquidity, solvency, capital access, and financial performance, and is benchmarked against industry peers to assess your competitive position.
While BizWorth is not a CPA firm and does not provide audit or attestation services, this certification provides data-driven insights into the financial stability of your business.
It serves as a trusted document that enhances your credibility with clients, partners, and investors.
Key Benefits of the Certificate of Financial Stability
Demonstrates Financial Health
Provides verified proof of your business’s financial standing, increasing trust among stakeholders.
Facilitates Access to Capital
Simplifies the process of securing loans or investments by demonstrating your low-risk financial profile.
Enhances Credibility
Establishes your business as financially reliable, making it more attractive to potential partners.
Benchmarked Analysis
Offers valuable insights by comparing your financials against industry standards, highlighting strengths and areas of opportunity.
Supports Contract Bids
Gives you a competitive edge where financial stability is a crucial requirement.
With BizWorth’s Certificate of Financial Stability, you gain the confidence of your business community while positioning your company for growth and new opportunities.
Proven Expertise Across Industries
BizWorth brings extensive experience in valuing businesses across a wide range of industries. Whether you’re in professional services, technology, healthcare, or retail, our team ensures that your business is appraised with precision, providing you with the confidence you need when preparing to sell.
Industries we serve include:
- Construction and Contracting Businesses
- Professional Services (e.g., Legal, Accounting Firms)
- Technology and IT Service Providers
- Environmental and Engineering Firms
- Healthcare and Medical Services
- Security and Defense Contractors
- Educational and Training Services
- Transportation and Logistics Providers
For a complete list of industries we serve, please visit our Industries Page.
The Key Components of a Business Valuation Report
Understanding the different components of a business valuation report is critical for making informed decisions about selling your business.
Equity Value
Asset Sale Value
Enterprise Value
Key Performance Indicators (KPIs)
Pricing and How to Prepare
For Pricing: Here’s a simple step-by-step process to obtain pricing for your business:
1) Click the green "Get Started" button on this page.
2) Choose Business Valuation from the menu.
3) Select Business Owner
4) Select Annual Business Appraisal.
5) Answer a few quick questions about your business.
That's it! You’ll receive instant pricing for your business.
How to Prepare: To help our appraisal team complete your report efficiently, here’s some information that will be useful to gather along the way. Don’t worry if you don’t have everything upfront—we’ll guide you through the process in the Data Collection Portal:
3 Years of Financial Statements (or Tax Returns): You will choose to upload either financial statements (Profit & Loss Statement and Balance Sheet) or tax returns of the business for the last three full years. Tax returns are usually preferred if you are buying or selling a business; however, financial statements are usually preferred for strategic planning purposes. Consult with your advisor, lender, or CPA regarding their preference. If you've been in business for less than 3 years, just provide what you have.
Year-to-Date Financial Statement: You will also be asked to upload a year-to-date financial statement through the valuation date. Be sure the year-to-date financials are through the same valuation date. It is preferred to use a month-end, quarter-end, or year-end date when possible.
A Small Business Valuation Company You Can Trust
At BizWorth, our commitment to providing independent, USPAP-compliant valuations has earned us a reputation for excellence. We proudly serve a diverse range of clients, including business owners, brokers, CPAs, attorneys and lenders.
Let us help you make informed decisions about your business investments with confidence and clarity. Get an online quote today!
Your Small Business Valuation Team
BizWorth is here to help
When it comes to Annual Business Appraisals, having an accurate business appraisal is essential. BizWorth is here to guide you through the process. Simply click the green "Get Started" button below to complete your annual appraisal.
Get an Instant QuoteAdditional Services
Let us help you achieve a precise and defensible valuation for your business. Get an online quote today!
Frequently asked questions
Still have questions about your annual business appraisal. We have compiled a list of questions other small business owners frequently ask.
A business valuation is the process of determining the economic value of a business or company. For government contractors, it’s especially important because it helps establish your financial stability and credibility with federal, state, and local agencies. Valuations are used not only for sale or merger purposes but also to demonstrate financial health when bidding on government contracts, applying for loans, or qualifying for certifications.
A business valuation is essential for proving the financial stability of your business, which is a key requirement when bidding on government contracts. It shows that your company has the necessary financial resources, creditworthiness, and ability to meet the obligations of the contract. Valuations can also help improve access to financing, secure better loan terms, and enhance your credibility with contracting officers. For more information, check out the "Define the Purpose" section of BizWorth’s Definitive Guide to Business Valuation Reports.
Business valuations for government contractors typically use methods like the income approach, market approach, and asset-based approach. These methods take into account your company’s cash flows, assets, and market position to provide a clear financial picture that federal agencies rely on. For more on how valuations are performed, visit the "Read the Report" section of BizWorth’s Definitive Guide to Business Valuation Reports.
For a business valuation specific to government contracting, you’ll need to provide the past three years of financial statements (income statements, balance sheets, cash flow statements), tax returns, and information on your contracts, assets, market, and competition. A complete list of required documents is available in BizWorth’s Definitive Guide to Business Valuation Reports.
The cost of a business valuation can vary based on your business's complexity and the level of detail needed for government contracting purposes. Typically, valuations for businesses involved in government contracts range from $1,000 to $3,000 for buying and selling purposes and can go up to $7,000 to $10,000 for more complex needs such as financing, legal disputes, or estate planning.
Business valuations for government contracting should be performed by certified professionals with expertise in both valuation and government compliance. Qualified professionals include Certified Valuation Analysts (CVAs), Accredited in Business Valuation (ABV) CPAs, or Accredited Senior Appraisers (ASAs). These credentials ensure the valuation is accurate and meets the stringent requirements of government agencies. Avoid using estimates from unqualified sources, as they can be 15-30% off from the true value and may not meet federal contracting standards.
For government contractors, getting an annual business valuation is crucial. It ensures that you have up-to-date financial data, which is vital when bidding on contracts, securing financing, or responding to agency audits. An annual valuation, accompanied by BizWorth’s Certificate of Financial Stability, can be presented to agencies to prove your business’s financial health and creditworthiness, increasing your chances of winning contracts and negotiating favorable terms.
To increase your business’s value in the government contracting space, focus on improving financial performance, diversifying your contracts, and maintaining strong compliance records. Strategies like increasing revenue, reducing expenses, and ensuring accurate financial reporting will make your business more attractive to contracting officers. Additionally, maintaining a Certificate of Financial Stability from BizWorth can help demonstrate your business’s ability to manage large-scale contracts, increasing your value to federal agencies.
A Certificate of Financial Stability is an official document provided by BizWorth that certifies your business has the financial resources, creditworthiness, and ability to manage its financial obligations. It’s particularly valuable for businesses seeking government contracts, as it proves to local, state, and federal agencies that your company is financially stable and capable of fulfilling the terms of a contract.
A Certificate of Financial Stability is crucial for businesses aiming to secure government contracts. It demonstrates to contracting officers that your business can manage the financial responsibilities of a contract, making your bids more competitive. This certificate can also be used to improve your standing with lenders, suppliers, and potential partners, as it assures them of your financial strength and reliability.
To obtain a Certificate of Financial Stability, your business must undergo a thorough financial review and valuation conducted by BizWorth’s certified appraisers. As part of this process, we analyze your financial statements, credit history, and cash flow to determine whether your business meets the necessary criteria for financial stability. Once the appraisal is complete, the certificate is issued alongside the valuation report.
You’ll need to provide key financial documents such as income statements, balance sheets, cash flow statements, and tax returns from the past three years. Additionally, details about your existing contracts, debt obligations, and financial projections may be required to assess your business’s long-term financial stability.
The Certificate of Financial Stability is typically valid for one year from the date of issue. Since a business’s financial position can change over time, we recommend obtaining a new certificate annually, particularly if you are regularly bidding on government contracts or seeking new financing opportunities.
The certificate enhances your credibility with government agencies by proving that your business has the financial resources to execute contracts successfully. It also improves your chances of securing better loan terms, favorable supplier agreements, and strategic partnerships. Additionally, having this certification allows you to respond quickly and confidently to government contract opportunities, knowing that you meet the financial requirements.
While not always a formal requirement, many government agencies look for proof of financial stability when awarding contracts. Having this certificate from BizWorth gives you a competitive advantage, as it shows that your business has been vetted and certified as financially capable of managing contract obligations.
The cost of obtaining a Certificate of Financial Stability varies depending on the size and complexity of your business. Typically, it is issued in conjunction with an annual business appraisal, and pricing ranges from $1,000 to $10,000 depending on the level of detail required. For businesses focused on government contracting, this is a worthwhile investment to ensure your bids stand out.
Yes, the Certificate of Financial Stability can improve your access to financing. Lenders and investors look favorably on businesses with certified financial stability, as it reduces their risk. This certification can lead to more favorable loan terms, better interest rates, and greater confidence in your ability to meet repayment obligations.
The Certificate of Financial Stability is typically included as part of your proposal package when bidding on government contracts. It can be submitted alongside your financial statements, business valuation, and other required documents to provide agencies with proof of your financial health. This certification reassures contracting officers that your business has the resources to fulfill contract terms.