Business valuation is a process used to estimate the economic value of an owner's interest in a business. Numerous methodologies are used by various parties when trying to determine the price they are willing to pay or receive as consideration to transact a full or partial sale of a business.
The same methodologies can be used to distribute purchase price among business assets or estimating the value of partners' ownership interest when it comes to selling, buying, acquiring, merging or structuring a joint-venture transaction.
The first step in managing or preparing for any potential transaction that involves your company is to understand how an independent 3rd party is likely to value your business asset.
With our collective experience and access to industry data and resources we can confidentially examine your company to provide you with a realistic value range based on current conditions and your future performance.
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It is not unusual for a successful Startup or an established business to grab the attention of private equity funds, family offices, high net worth individuals, angel Investors, funds, or venture funds. A recent business valuation can offer a complete snapshot of the business, its financial health, structure, and future growth and earning potential.
Whether you need to buy new equipment, remodel, or meet payroll, you want to be fully prepared for obtaining financing. Presenting the lender with a professional business valuation, including detailed financials, will help streamline the process.
A professional valuation is necessary to give you a clear, objective assessment of the target business's market value based on its current condition. It will help you in propose a defendable price, give more confidence during negotiations, and in closing the transaction.
A professional valuation is necessary to give you a clear, objective assessment of the business's market value based on its current condition. It will help assess an acquisition offer, give more confidence during negotiations, and in closing the transaction.
Uncover opportunities where your business can grow revenue, for example adding products or markets. It can help you identify areas where you can reduce or eliminate costs, identify gaps, to operate more efficiently and effectively.
A business valuation will help plan one's future. It will give a baseline assessment and the current condition of the business. It will reveal any gaps in expectations and help in choosing the best option and create a plan to meet one's goals.
It is common for one business owner to decide he or she wants to divest ownership. the remaining partner and or shareholders retain a professional to determine the value for a buy-out of the ownership interest.
It is common for older generation of ownership to decide he or she wants to divest ownership, the remaining management team will retain a professional to determine a value for a buy-out of the older generation.
To get your business properly insured, a detailed business valuation can help you determine the amount of coverage you need. Your business valuation could influence payouts for a co-owner life insurance agreement, as well as payouts for natural disasters.
If something happened to you, do you have a plan in place to protect the future of the company? Would you choose a family member to run the business, or would you prefer to leave it to your partner or a key employee? A recent business valuation with up-to-date financial records would help this person get your estate in order.
During a divorce, the distribution of assets and liabilities, anything spouses buy, build, or acquire during the marriage, may also include a business. A professional, unbiased business valuation will help both you and the court make an informed decision.
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