Business Intermediary Services, Ltd. specializes in middle-market transactions (companies with a transaction value between $1 million and $20 million). We are a full-service firm providing the necessary expertise to successfully complete the transaction. We offer Business Brokerage Services, Business Appraisal Services and Consulting.

Business brokerage accounts for approximately 75% of the firm's revenues. We represent both sellers and buyers but never both in the same transaction. Details of the services we provide sellers and buyers can be found by going to SELLERS or BUYERS respectively.

Business Intermediary Services, Ltd. performs business appraisals of small and middle market companies. The first step in selling or purchasing a business is determining its fair market value. The Internal Revenue Service defines "fair market value" in Revenue Ruling 59-60 as follows:

…"the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts." Court decisions frequently state, in addition, that the hypothetical buyer and seller are assumed to be able, as well as willing, to trade and to be well informed about the property and concerning the market for such property.

The approaches to valuation are:

1. A determination of fair market value, being a question of fact, will depend upon the circumstances in each case. No formula can be devised that will be generally applicable to the multitude of different valuation issues. Often the appraiser will find wide differences of opinion as to the fair market value of a particular stock. In resolving such differences, the appraiser should maintain a reasonable attitude in recognition of the fact that valuation is not an exact science. A sound valuation will be based upon all the relevant facts, but the elements of common sense and informed judgment and reasonableness must enter in the process of weighting that act and determining their aggregate significance.
2. The fair market value of specific shares of stock will vary as general economic condition change from "normal" to "boom" or "depression;" that is, according to the degree of optimism or pessimism with which the investing public regards the future at the required date of appraisal. Uncertainly as to the stability or continuity of the future income from a property decreases its value by increasing the risk of loss of earnings and value in the future. The value of shares of stock of a company with very uncertain future prospects is highly speculative. The appraiser must exercise his judgment as to the degree of risk attaching to the business of the corporation which issued the stock, but that judgement must be related to all of the other factors affecting value.
3. The valuation of securities is, in essence, a prophesy as to the future and must be based on facts available at the required date of appraisal. As a generalization, the prices of stocks which are traded in volume in a free and active market by informed persons best reflect the consensus of the investing public as to what the future holds for the corporation and industries represented. When a stock of closely held, it is traded infrequently, or is traded in an erratic market, some other measure may be found in the prices at which the stocks of companies engaged in the same or a similar line of business are selling in a free and open market.

The following eight factors, although not all-inclusive, are fundamental and require careful analysis in each appraisal:

1. The nature of the business and the history of the enterprise from it inception.
2. The economic outlook in general and the condition and outlook of the specific industry in particular.
3. The book value of the stock and the financial condition of the business.
4. The earning capacity of the company.
5. The dividend-paying capacity.
6. Whether or not the enterprise has goodwill or other intangible value.
7. Sales of the stock and the size of the block of stock to be valued.
8. The market price of stocks of corporations engaged in the same or a similar line of business having their stocks actively traded in a free and open market, either on an exchange or over-the-counter.

Business Intermediary Services, Ltd. is uniquely qualified to appraise businesses because appraisals should "mirror" the market, and we are in the market every day. We are members of The Institute of Business Appraisers, the premier professional society of business appraisers, and all appraisal reports meet its Business Appraisal Standards.

Approximately half of the business appraisals performed by Business Intermediary Services, Ltd. are for sellers or buyers who need to know the value of the business for reasons related to a sale or purchase. We also appraise businesses for buy-sell agreements, stockholder disputes, and equitable distribution of property (martial dissolutions).

If you would like to discuss Business Intermediary Services, Ltd. performing a business appraisal for you, contact one of our M&A Professionals.

Business Intermediary Services, Ltd. offers consulting services related to corporate development and building shareholder value. Our consulting assignments are divided almost equally between these two areas of expertise.

Our corporate development clients are seeking strategic advice on how to grow their companies. These assignments require an in depth analysis of all the critical factors related to the alternatives available and determining those alternatives which are best for the company. We extensively use the "Real-Win-Worth" methodology developed by Schrello Associates, Inc. By looking at only 20 questions-- 6 related to "Is it REAL?," 8 related to "Can we WIN?," and 6 related to "Is it WORTH it?"--a business decision can be made relatively quick regarding a product or service. These assignments usually begin with a Consulting Agreement and often lead to the client retaining us to conduct an acquisition search and perform a Business Appraisal of an acquisition candidate.

Building shareholder value is a growing area of our consulting practice. We have never met a shareholder who did not want his business to be worth more. It is our extensive experience and education that gives us the knowledge to analyze a company's financial performance relative to other similar companies and making recommendations on areas where improvements will result in an improved bottom line.

If you would like to discuss Business Intermediary Services, Ltd. performing a business appraisal for you, contact Erich K. Schmid.