I'm a young health professional and an opportunity has arisen to purchase a business in my field. I know this isn't about shares or macro stuff but ASF has some of the smartest, knowledgeable, and helpful people I know (well I guess I don't really know you all but I admire your posts)
I've shopped around for accounting firms to help me perform due diligence/valuation because this will probably be the biggest investment/decision so far in my life and I really want to be sure. My problem is that I've never had an accountant so far and don't know what to look for. So far I've just judged firms over the phone. I've struck off unfriendly people off my potential lists and now I've narrowed it down to two.
One seems friendly has reasonable in terms of price while the other doesn't seem as friendly but did spend some time on the phone explaining business valuations, ROI, and framing the decision in other lights I've never thought about. The latter is also more expensive.
After typing all that, I may have just answered my own question. I seem to just be judging the former on how friendly and likeable he is. The second accounting firm promised to go through the basics of seeing if a business if even worth valuing. I think I should go with the second one?
Or is it even better to have 2 independent opinions? The downside is cost.
Also any discussion on small business valuations would be great. Everywhere I read, it's all about multiples of EBIT. Although some talk about DCF method (way beyond my knowledge).