Business Valuation in Salt Lake City: What Utah Owners Should Expect
Most Utah owners asking what their company is worth are told a rule of thumb. Two times earnings, or a percentage of revenue, or whatever a neighbor supposedly got. None of that is a valuation, and none of it survives contact with a buyer or a lender.
What a real valuation actually involves
Three things, in order.
Normalization. Three years of financials plus year to date, recast to show the true economic earnings of the business. Owner compensation and benefits added back, interest, taxes, depreciation and amortization added back, documented personal and one-time expenses added back, and related-party arrangements adjusted to market rates.
Comparable analysis. Benchmarking those normalized earnings against closed transactions of similar companies in similar size ranges. Closed transactions, not listing prices. Listings measure what optimistic sellers hoped for, and most of those companies never sold.
Adjustment for your specifics. Earnings quality, customer concentration, owner dependence, recurring revenue and growth trajectory determine where inside the industry range you land.
Why owners get valuations
A sale is the obvious reason, but it is not the most common one in our experience.
Exit planning is the highest-return use. A valuation three years before you intend to sell tells you which specific factors are suppressing your number while there is still time to fix them.
Partner buyouts and ownership changes need a defensible number both sides can accept. Estate and succession planning needs one your attorney and CPA can work from. Financing and SBA transactions frequently require independent valuation. Divorce and litigation matters require something that stands up to challenge.
What it costs in Utah
Professional valuation work in this market generally runs from a few thousand dollars for a straightforward opinion of value to five figures for a full narrative report supporting litigation or a formal transaction. The range depends on the complexity of the business and the standard of report required.
Be cautious of free valuations attached to a listing pitch. A number produced to win your listing is a sales tool, and the incentive runs toward whatever gets you to sign.
Equipment and asset appraisal
For Utah manufacturers, trades companies and anything with a fleet, book value understates what the equipment is actually worth. Depreciation schedules are tax constructs. A fair-market-value appraisal often surfaces real value that the balance sheet erased, and it strengthens lender underwriting at the same time.
Start with the range
Our calculator gives a directional range in about sixty seconds using industry multiples. It is a starting point rather than a valuation, and it is free.
From there, Aesir offers a complimentary valuation consultation: a conversation about your business, a preliminary range based on your actual numbers, and a straight assessment of what would move that number over the time you have. We are based in Salt Lake City and work with owners across Utah and nationwide.
Common questions
How much does a business valuation cost in Utah?
Professional valuation work generally runs from a few thousand dollars for a straightforward opinion of value to five figures for a full narrative report supporting litigation or a formal transaction.
Why would I get a valuation if I am not selling?
Exit planning is the highest-return use. A valuation three years before you intend to sell tells you which factors are suppressing your number while there is still time to fix them. Partner buyouts, estate planning and financing also require one.
Are free business valuations reliable?
Be cautious of free valuations attached to a listing pitch. A number produced to win your listing is a sales tool, and the incentive runs toward whatever gets you to sign.
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