Business Valuation Services

Whether our clients are selling a business, buying a business, planning an estate, or obtaining debt or equity financing, we’re experts at the business valuation.  Our distinctive ability to combine real-world deal experience, strategic perspective and analytics into business valuation projects enables our clients to draw informed conclusions—and make time-critical strategic decisions.

Many clients ask the same question, “What is my business worth?”  This is a very loaded question being there are several perspectives to consider.  Here is a few definitions that must be considered:

Asking Price:  The price the business owner wants for their business for sale.

Selling Price:  The price the the seller and buyer ultimately agree to the price of the business for sale.

Fair Market Value:  Is the highest price the buyer is willing to pay and the lowest price the seller is willing to accept.

Market Value:  The most probable price the business for sale should bring.

Investment Value:  The value a company has to a particular investor, that considers the effect of synergy in its valuation.

The other big question asked is “How to value a business?”  There are as many different approaches to business valuation as there are types of businesses.  Some methods include:

Income & Revenue Approaches

  • Discounted Future Earnings
  • Capitalized Adjusted Earnings
  • Seller’s Discretionary Earnings
  • Gross Revenue Multiplier
  • EBITDA Multiplier

Market Approaches

  • Prior Transactions
  • Guideline M&A Method

Asset Based Approaches

  • Adjusted Book Value
  • Excess Earnings Method
  • Rules of Thumb & Industry Formulas

We believe that many factors need to be considered when valuing businesses, which include:

  • Years in business
  • Years owned by seller
  • Amount of Seller financing
  • Competition
  • Risk
  • Business Growth Trend
  • Location & Facilities
  • Desirability
  • Industry Growth Trend
  • Ease of Duplicating Business

Our approach is further enhanced by our partnership with one of the nation’s top business valuation firms. We work in tandem with certified business appraisers to produce comprehensive Uniform Standards of Professional Appraisal Practice (USPAP) business valuation reports, fairness opinions, and evaluations of offers in hand.

Simply put, we don’t just draw on theories and historical averages; instead, our transaction experience coupled with our industry-leading business valuation expertise enable us to develop the sound, reliable business valuations you need.