Investment Advisory (Private Client Services)
Do you Know what your net worth is?
Hope is not the answer, let RFS lay out a comprehensive financial road map that is easy to follow and puts your financial interests first. With over $75 million under advisement, you can rest easy knowing we will get you there.
Numerical and Financial Factors
In addition to numerical factors such as your profit margin, there are other indicators such as liquidity and solvency ratios that also evaluate your company's performance ensuring that it can continue its operations.
Liquidity is the ratio of current assets minus current liabilities divided by total assets and measures how quickly a company can raise cash.
Solvency is the ratio of net profit plus depreciation divided by total liabilities and measures your company's ability to continue to service its debt. You can compare these ratios to those of other companies to evaluate performance.
Business Valuation Methods that determine worth:
- Asset-based approaches
- Earning value approaches
- Market value approaches
Asset-Based Approach
Essentially, an asset-based business valuation will total up all the investments in the company.
Asset-based business valuations can be done in one of two ways:
- A going concern asset-based approach looks at the company's balance sheet, lists the business's total assets, and subtracts its total liabilities. This is also called book value.
- A liquidation asset-based approach determines the liquidation value, or the net cash that would be received if all assets were sold and liabilities paid off.
RFS professionals consist of CPAs certified TAX and valuation experts that are credentialed by the most respected professional valuation societies, the American Society of Appraisers (ASA) and the National Association of Certified Valuators and Analysts (NACVA), with 160+ years of valuation and Tax experience.