What is a business valuation

A Business valuation is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. At LINK we provide business valuations through an "appraisal methodology" ;to determine the price someone is willing to pay or establish the price to effect the sale of a business.

Reasons to seek a business valuation

In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of a partners' ownership interest for buy-sell agreements, and many other business and legal purposes such as in shareholders deadlock, divorce litigation and estate contest.

At LINK we focus on appraising businesses for the purpose of selling assets and stock as a going concern.

What is the Value of a business

Many business owners believe the value of their business is net profit, or gross sales, multiplied by an industry rule of thumb. Using this method will often give a different result than the value that can be achieved by a LINK business broker.

The true value of a business is based on the following elements:

Intangible assets -  Goodwill, Customer lists, Trademarks and Copyrights, Distribution Rights, A superb Management Team, Non-compete agreements, Physical location,, Special Processes, Brand recognition    Tangible Assets - Real Estate and Machineries, Plant equipment, furniture and fittings, Debts


Quite often the value of a company's intangible assets is greater than the tangible assets. Valuing intangibles, however, is where the services of a business valuation professional are recommended as it requires a careful analysis of many aspects of a business enterprise. To value intangibles, the following five criteria must be considered:

  •  Management Capabilities
  •  Company strengths, weaknesses and vulnerabilities
  •  The competitive environment
  •  Overall expectations for the marketplace
  •  Economic prospects for the industry
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At LINK our business value appraisals form part of a bigger report in which our brokers and in some cases valuers, evaluate a business and provide a detailed appraisal. Our Business Value Appraisal is both a provision of our estimate of a business’s worth, but also an appraisal of its position in the market and it’s sale-ability.

For many business owners this provides a more rounded view of their business and not simply a business valuation, or a number against the worth of a business.

We believe that most businesses are so much more than a number and that any fair business appraisal should take into account a number of key factors and provide greater insights for the business owner than a mere number.

By providing sound advice and insights, our brokers are able to deliver achievable targets that will increase the value of a business and endeavour to increase the perceived value or worth of that business.

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4 Key Elements of a LINK Business Valuation

Economic Situation A look at national, regional and local economic conditions existing as of the valuation date, as well as the conditions of the industry in which the business operates. After all, no business operates in a silo and therefore any appraisal needs to consider the environment in which a business operates

Financial Analysis A look at the financial statements of the business, using ratio, trend and industry comparative analysis tools to deliver a more scientific report on the financial state of the business. As the largest business brokerage in the world, LINK looks at industry comparisons both nationally and internationally. With a wide spread of brokers and more business sales than any other brokerage, we’re able to provide a more experienced report based on analysis of a huge volume of sales.

Accounts Normalisation Any prospective purchaser needs to know how much cashflow they can extract from the business without unduly affecting operations. Our appraisal takes several approaches to making adjustments to the accounts to deliver a fair reflection of the opportunity.

Business Market Value There are three broad approaches to business valuation and then a number of techniques that can be used within each approach. At LINK we consider all three business valuation approaches before providing a recommendation on which to apply to a particular business.

Your LINK Business Broker is well placed to talk you through the process we follow in appraising any business for sale.

Featured Businesses for Sale
                           
Own a MASTER FRANCHISE of this Unique U.S. based Food Concept

Master Franchise  : 25 MILLION
 
With stores across the USA , Canada and New Zealand, this Unique Food Concept has a tremendous potential for growth and is set to launch a Fresh Franchise Opportunity for the Philippines.
 
WHY BECOME A MASTER FRANCHISEE?
 
Franchise fees: Sell Franchises within your territory and collect all the franchise fees
Independence: run your territory as if it were your own Franchise business with only a    
  few established protocols from your parent brand to guide you.
Royalties. Receive royalty income every month for the life of the franchises that are
  open in your exclusive territory.
Proven Systems: Utilize your franchisor’s leadership and support with highly effective
  systems in place
Well known Brand: Be part of a business which has already spread awareness of its
  brand and trusted reputation
Build Equity: Significantly increase the value of your Master Franchise investment
  once you sell a few franchises or open your own franchises.
 
 REASONS TO INVEST
 
Menu: Broad consumer base appeal with innovative, fresh menu offerings at  a great value
 • Training Programs. Comprehensive Initial training designed to speed up on the most  successful methods to run the business. With reference materials to assist you in dealing with whatever comes up while you're running your business
 • Ongoing Operational Support. . You're not alone when you're building and running  your business with staff provided to give ongoing assistance especially when you hit a rough spot.
 • Marketing Assistance. Provide you with proven Innovative multi-platform tools and strategies that speak to today's consumers
 • Positioned for growth : With a compelling QSR+ Proposition: Quick Service Value +   Fast Casual Quality and experienced, trusted leadership team, this brand is set for  steady growth
 
This Brand has experienced incredible store growth.  Starting in 2015 with just three stores,they closed out 2016 with fifteen stores open and 2017 with forty-four stores operating.  As of Sep. 2019,it has seventy two locations with an additional sixteen stores currently under construction. Their goal is to open an additional twelve stores by year end, thus bringing total to one hundred locations by end of 2019.   It is forecasting to have a total of two hundred locations open by the end of 2020.

Own this Master Franchise and get  Tremendous Business Satisfaction and     FinancialLleverage.



 
A FIERY FUEL FOR YOUR NEXT SUCCESS

ASKING PRICE 1 Million
A profitable restaurant business with a unique  and yet very simple model to execute Popular among Filipinos  because of its reasonably low priced offerings  and unlimited portions.

The cook-it-yourself model with an endless supply of sides and long queues help this business keep revenues steady.
Sale comes with 4 well trained service crews. Space is at 85sqm which facilities to accommodate  at least 60pax. Monthly rent is at P 25,000.00/ month  without escalation and renewable every  5 years. Average Monthly gross sales is at
Now Partnered with Grab Food, Bookie and Food Panda increasing daily revenues to at least 20-30%



 













 
Hip Online-Based Apparel Catered to Gen Z 

 ASKING PRICE :1.3 Million

A local brand that started out from the owner’s passion for fashion. This E store caters to customers aged 15 - 25 years old. The brand offers a wide variety of customizable hip casual clothing from t-shirts to jackets and caps with a total of 932 individual items posted for sale at Zalora.ph.
 Basing from its niche clientele, the apparel boasts of good online reviews commending the brand for its comfortable and high quality products. With Facebook likes of around 200,000 individuals and Instagram followers of nearly 72,500 people, this local brand icon has an extremely popular niche with tons of demand.
 It is a very profitable industry with an enormous room for growth. Finding customers is very simple and makes day to day operations very easy. This business has existing philgeps accreditation and can enter into contracts with numerous government agencies.
 
With  a Handsome Online storefront  this deal is hard to pass on.

 Additional Details: \
This business is looking for a passionate owner who has the correct vision for this beautiful brand. Seller is Willing to train successor on businesses processes for a week.
 
Reason for sale: Owner is moving abroad.
Established & Cash Cow Community Bakery

 ASKING PRICE :3 Million ( 3 BRANCHES W COMMISSARY)

Check this out! This Bakery business can accommodate a total of 380 patrons daily, generating a revenue of approximately 20K to 25K a day!  Originally established 35 years ago, the brand is a local favorite and go-to place to satisfy your cravings for freshly baked, community breads! Branches are strategically located within the residential districts of Pasig and Mandaluyong. It has become one of the popular bakeries in the area especially among residents. The Bakery is an ideal place to grab a bite, satisfy cravings for freshly baked goodies! This well-established Bakery which prides itself with solid branding and well-loved breads from our youth. Location is accessible. Notable key areas include newly built residential condominiums, supermarket, restaurants and commercial areas. Included in the sale are the existing stock, equipment and furniture so will be a turn-key operation. 
Fast Growing Milk Tea Franchise from Taiwan

 ASKING PRICE :1.8 Million

This fast-growing milk tea brand from Taiwan has already established its strong presence in a short period of time in the Philippines. Buyer will take over a smoothly running business with strong marketing and already established customers. This particular branch was opened November 2019 with an investment capital of almost PhP3M. Now, the asking price is almost 50% off the initial investment. Since it reopened in June, average daily sales is about PhP7K and of course, as the situation becomes better, sales is expected to increase. Reason for Sale: Owner has to go back to the US to attend to some business matter.
Own an Irresistible Mango Drinks and Desserts Business

 ASKING PRICE :800,000.

Who can resist delicious mango drinks?

This franchise business offers a good selection of mango beverages and desserts perfect for mango lovers. This is a kiosk set-up located inside a Makati mall with foot traffic contributed by a learning school in front and a premier grocery store that’s a stone’s throw. Delivery services such as Grab, Food Panda and Zomato are already activated. With proper management, this business has the potential to flourish given its location and the quality of its offerings.

Since this is a franchise business, it is perfect for those who are venturing into business for the very first time or if you are looking for an easy-to-manage business.

Reason for Selling: Owner got a hard-to-resist job offer and won’t be able to look after this business.

                       
Well-regarded  Preschool & Child Care Center

ASKING PRICE : 8 MILLION
 
The sale of the business comes with all the furnitures and furnishings, stocks, inventories as well as the curriculum which caters to toddler, nursery, Pre-Kinder and Kinder, Plus a Patented Play Center for 6-24 months old learners . The center now has over 65 enrollees and is expected to increase in the coming months.  A 5–year  Franchise Contract shall also  be extended to the new owner.  Appropriate Turnover and Training  shall be provided by seller .
This Preschool has a neat ambience , quality  furniture and furnishings, well maintained facility  and  ample space for various  learning activities.
 
This  established  Preschool Franchise is located roadside of a well known Business District. Highly visible and with ample facility to accommodate more students  than the average Preschool. This center has a tremendous potential for increased enrollment.Now offers Online Distance Learning.
Reason For Selling : Cashing-In  



 
                  2 Popular  Preschool and Child Care Center            
 

ASKING PRICE 25Million

 
This Profitable Preschool  is conveniently located  within Pasay City's commerciaL hub and a notable subdivision in the south making it  very convenient for drop off and pick up. This preschool has rapidly grown its studentry to more than  140  enrollees to date.  The centers offer facilties  conducive for learning . The center has been an industry leader since 2010  and has  developed a Franchise system in place with an established brand.
 
This Preschool Offers programs for toddlers , Junior Kinder, Senior Kinder and Nursery . It also has Drop-In Day Care Services for infants to 6 year olds .
This preschool is licensed by The Department of Education  with very competitive Tuition Fee Rates.  Sale comes with another 5 year Franchise contract for each  from date of Purchase.
 



 
3 PREMIER PRESCHOOL  

ASKING PRICE 48 Million

This is the Best opportunity to get a Premier Preschool and Child Care Center.  This Preschool is  located inside a charming upper middle-class  subdivision in the south. It has been in operation for several years and has an excellent reputation within the community. They Also Offer a Trademarked services for Day Care and Infant Enhancement Program
 
Curriculum:
Under DepEd with Open Enrollment. Issues Learner Reference Number  to All Kinder





 
Established Salon in the South

ASKING PRICE ₱ 4,900,000

Almost a decade in the industry shows strong business resilience. Over the years, it has earned the trust of clients for their excellent service at reasonable price points. This salon caters from mid to high end market in the area. Salon uses only top-of-the-line products and serviced by highly skilled stylists. Every detail is well thought of, from imported tiles from Italy to lavish chairs that make sitting there for hours a breeze! It comes with 9 styling chairs in a beautifully designed space. Strategically located along one of the busiest streets in Paranaque on a ground floor unit. Lease is on a 10-year term with amazingly good rates at around ₱ 41,000/monthly. Annual escalation is only at 6%. 2019 gross sales was at ₱7,063,633.50 and with a profit margin of more than 60%. With the current pandemic, business is trying to pick up on sales again since they’ve reopened in midJune. Its success over the past few years shows that this business is here to stay.
Your Neighborhood Reputable Sports Bar

ASKING PRICE ₱1,550,000.00 

A thriving 6-year old neighborhood restaurant pub and bar is a favorite hangout among the locals in the area. It is strategically located within the commercial business district and a stone’s throw away from a known residential community. The Bar can seat a total of 25 patrons covering an area of 43 square meters who choose to unwind after an exhausting day at the office and an additional 30 seats for al fresco dining. It is an ideal place to unwind and enjoy the band music with a repertoire for acoustics.  The Bar prides itself in featuring the highly anticipated sports events to include NBA and PBA finals, boxing matches of Manny Pacquiao and other sporting events occasionally. They maintain a visible presence in social media boasting with nearly 4,000 followers and likes, where they are able to tap and reach out to existing clientele and attract prospective customers as well. Location is accessible and is approximately 280 meters from the main highway with ample parking. Included in the sale are the existing stock, equipment and furniture so will be a turn-key operation. The lease is secured until December 2021 with a monthly rent of P28,380.

 
Veteran Freight Forwarders

ASKING PRICE ₱ 2,5 MILLION

A company that has established its name in the industry of both domestic and international air freight services.

This business caters to companies of all sizes. Well trained staff with up-to-date computer systems to connect with carriers. Provides total logistic solutions to importers and/or exports with major economic countries.

Sale of business includes 1 unit of H100 delivery van, office supplies and equipment, complete business permits, database of clients, strategic partners and extensive local and international network that are vital in shipment process and business operations.

Average monthly sales for 2017 is between $2,000 - $4,000. Monthly rent is currently ₱15,000. Office space is 30 sqm. Currently has 4-6 employees.

Get Prepared Now! Buy a Business Today.


There are great buying opportunities in the market. Its a great time to be looking. Preparation will help you secure a great business in what will be a competitive market.

Call a LINK Business Broker . We've been through economic downturns a few times before We'll help you find a the Best Business for You!


CALL to ask Kris Garcia
Globe  0917 428 7888
Smart  0918 458 4866
PLDT          8583 6013
email:kris.garcia@linkbusiness.ph
www.linkbusinesskrisgarcia.com

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