Article on Valuing a Small Business Features Axiom’s Roger Winsby
Wakefield, MA – The August 8, 2005 “Succeeding in Your Business” syndicated column by Cliff Ennico entitled “Placing the Right Value on a Small Business” featured an interview with Roger Winsby, Axiom Valuation’s president. Mr. Ennico’s column appears in about 60 newspapers nationwide, and reaches about 3 – 4 million readers each week. It also appears on some of the major small business Websites such as www.entrepreneur.com and www.sbtv.com.
The goal of the article was to provide a clear guide for owners or potential buyers of small businesses on how to determine a reliable value on a business. Mr. Winsby laid out a simple five step process and recommended a small business valuation guide available at www.valuationresources.com. Most importantly, he emphasized that the value of the business should be based on future expectations of the business performance. Mr. Winsby noted “the history is context, but you’re buying the assets of the business so you can hopefully get a better return than the current owner.”
The article also included a warning about using an average value multiple such as Price to Sales or Price to EBITDA. Mr. Winsby notes that for most industries the value multiples for reported transactions have a wide variance, so the average can be quite misleading.
About Axiom Valuation Solutions
Axiom Valuation Solutions is a leading national provider of business valuation services based in Wakefield, MA. Its clients come primarily through referrals from professional advisors, including CPAs, financial advisors, and attorneys. Axiom Valuation offers competitively priced, certified business valuations for use in IRS gifting and estate tax filings and in litigation cases; and a unique service designed and priced for business owner planning applications: an accurate value estimate documented in a customized 50+ page report using the most accurate method of business valuation.
For more information visit www.axiomvaluation.com.
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