Mobile, Alabama, Business Brokers and M&A Advisors

Business Broker and M&A Services in Mobile, Alabama

• Email: [email protected]
• Phone: (251) 270-5567
• Address: 11 North Water Street, Mobile, Alabama 36602, USA
• Hours: Monday to Friday | 8am to 5pm

Determining Your Business’ Value

One of the most important aspects of the sales process is valuing your business. Without an accurate valuation of your business, you cannot determine an asking price or properly sell your business. An inaccurate valuation of your business can have devastating consequences, causing you to over- or underprice your company and thus making a successful sale less likely. Given these stakes, properly valuing your company is clearly a vital aspect of the sales process.

However, business valuations are somewhat subjective. Countless industry experts and professional brokers have written books detailing various business valuation methods. Each method can come to a slightly different conclusion about your business’s value, and the same can be said even when different brokers utilize the same method. This is why it is important to remember that business valuations are an estimate of your company’s market value .

Ultimately, your business’s true value can only be determined by the market and how much a buyer is willing to offer. Read more about Valuation

Valuing Your Business with the Cash Flow Method

Understanding the value of your business is key to setting the right price and attracting buyers. At Morgan & Westfield’s Mobile, Alabama office, we use the cash flow method, a proven and reliable approach to business valuation.

What is the Cash Flow Method?

• Emphasizes cash flow, which reflects a business’s ongoing financial health, instead of static assets that depreciate over time.
• Focuses on true profitability, not just net profits.Includes discretionary expenses like:
  • Depreciation
  • Interest expense
  • Owner’s salary
  • Other non-essential costs

Why Buyers Favor the Cash Flow Method

• Buyers are primarily interested in a business’s cash flow because it represents continuous financial returns.
• The method accounts for cash flow multipliers based on specific business qualities, providing a comprehensive market valuation.

Read more about M&A Guide | The 4 Types of Buyers of Businesses

How the Valuation Works

1. Analyze Cash Flow:

• Includes discretionary expenses to reflect true cash flow.
• Excludes depreciating assets as they have limited long-term value.

2. Apply Multipliers:

• Specific factors influencing multipliers include:
  • New or upcoming product lines.
  • A diverse customer base (no single customer exceeding 10% of revenue).
  • Local market position and competition.
  • Overall market share and growth potential.
  • Business location and lease retention ease.
  • Condition of tangible and intangible assets.
  • Risk of key personnel departure post-sale.

Determine Value

• Positive attributes increase value when multipliers are applied.
• Negative attributes, like declining market share or over-reliance on a small customer base, reduce value.

Why Professional Valuation Matters

Business valuation is a complex process that requires careful consideration of numerous factors. An accurate valuation not only ensures you set an appropriate asking price but also maximizes your business’s appeal to potential buyers.

At Morgan & Westfield’s Mobile, Alabama office, we have extensive experience serving the diverse communities of this region, including Downtown Mobile, Midtown, Spring Hill, Cottage Hill, West Mobile, Dauphin Island Parkway (DIP), Oakleigh Garden Historic District, Ashland Place Historic District, Old Dauphin Way Historic District, The Loop, Creekwood, University Area, Maysville, Crichton, Park Forest, Seven Hills, Saraland, Daphne, and Spanish Fort.

For expert assistance with valuing your business, contact us at 888-693-7834 to learn more about our services.

Business Advisors of Southern Alabama

At Morgan & Westfield’s Mobile, Alabama office, our professional advisors specialize in assisting business owners in Southern Alabama and Southern Mississippi with the sales process. We proudly serve communities across Mobile County, Baldwin County, Washington County, and Mississippi’s Jackson County, George County, and Greene County.

With extensive experience and hundreds of successful transactions annually, we are equipped to facilitate the sale of businesses in this region.

If you’re considering selling your business, visit us at 11 N Water Street, Mobile, Alabama 36602, or contact us today to learn how we can help.

Our President is Your Point Person

Jacob Orosz

President and Founder of Morgan & Westfield

25+ Years of M&A Experience: Over 25 years of experience facilitating mergers, acquisitions, sales, and other business transfers with transaction values up to $500 Million.

300+ Transactions: Successfully participated in or managed the sale of over 300 privately held companies representing both buyers and sellers in North America, Central America, South America, Europe, and Asia.

Author of 5 Books on M&A: The Art of the Exit, A Beginner’s Guide to Business Valuation, The Exit Strategy Handbook, Closing the Deal, and Acquired.

Host of M&A Talk: Host of the #1 podcast on selling a business – M&A Talk.

Host of M&A Talk: The #1 Podcast on Selling a Business

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The Morgan & Westfield Advantage

At Morgan & Westfield, you’re in the C-suite. We don’t turn you over to a junior associate. You’ll work directly with the president of Morgan & Westfield, Jacob Orosz, who is with you from start to finish. Jacob has over 25 years of experience selling businesses, is the author of five books on M&A, and is the host of the #1 podcast on mergers and acquisitions – M&A Talk.