Methods Used in Business Valuation
Unleash the true potential of your company with our dynamic Business Valuation service!
We combine precise financial modeling with vibrant market insights to uncover the real worth of your enterprise.
Comprehensive Financial Analysis: We dive deep into your historical performance—analyzing revenues,, and cash flow—to create a strong valuation model using SDE, EBITDA, and DCF methodologies.
Competitive Benchmarking: With our exclusive market data and industry comparisons, we position your business against the competition to uncover premium pricing opportunities and exciting growth avenues.
Tailored Valuation Report: Get an insightful, actionable report packed with scenario analyses, sensitivity, and strategic recommendations—empowering you to negotiate with confidence and plan your exit strategy.
Trust in a valuation process that’s as clear as it is thorough. Are you ready to unlock your business’s full potential?
The Valuation Process
We Sell Businesses.
As a business owner considers placing their company on the market, ascertaining the proper value for the company is critical.
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Too often the owner assigns an unrealistic and unachievable arbitrary value then proceeds into the sale process only to be disappointed with the market’s response.
As a result, the asking price is reduced several times. During this unfortunate period buyer prospects and valuable time is lost.
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A company’s value is determined by a compilation of factors such as the company’s sales, earnings, performance, market outlook, personnel, net book value, and fair market replacement value of equivalent operating assets. But it can also be influenced by intangible assets like the company’s image, reputation and goodwill.
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To maximize the fair market value of your business, it’s vital that you capitalize on those intangible assets.
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Develop key employees. Buyers generally aren’t interested in paying a premium if the business relies on you for its success. Remember to delegate responsibility to key employees and involve your key staff members in the decision making process. Demonstrating that your company’s success is reliant on your capable, well-trained employees – not just you – will pay off at the time of sale.
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Document what you do. Be sure that job descriptions, operation processes, and strategic plans are documented. Documented records and plans give a buyer greater comfort that he or she will be able to emulate your successful growth and will help your buyer obtain financing. Also, be sure to keep business records like sales and expense reports, internal profit and loss statements/balance sheet, and tax returns clean and well-organized.
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Build relationships. Name recognition, customer awareness and your reputation are all part of your business value. Even if your company doesn’t have many hard assets, your relationships are key. Consider diversifying both supplier and customer accounts.
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Improve cash flows. A potential buyer wants to see the “true cash flow.” And, of course, in the business world cash is king. Be sure you are driving all income to the bottom line.
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Review your assets. Sell off or dispose of unproductive assets or unsalable inventory. Remove or buy off any assets that are primarily for your personal use.
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Find and build your niche. You don’t have to be everything to everyone. Buyers will pay a premium for a niche that has barriers to competitive entry.
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Remodel, clean, and organize. What’s the first thing anyone does when they put their home on the market? They spruce things up and make sure everything is in its right place. Yet, in business, that’s rarely considered. A well-maintained facility will get the best price. Even businesses that lease space can benefit from a thorough cleaning and organization to convey a feeling of quality and efficiency.
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There are several approaches to valuing your business.