Business ValuationsBusiness valuations are used for a variety of purposes. An objective valuation provides the business owner with an important tool for planning an orderly transition – it is a benchmark against which to measure the owner’s personal, business and financial objectives, and it serves to identify viable transition options, including the timing of the liquidity event. Business valuations are also important for banking, insurance, stock option grants, intergenerational transfers, internal strategic planning, C to S Corporation conversions, and in instances of unexpected major events. A valuation is the first step in the FMV mergers-and-acquisitions process. An FMV valuation involves a thorough analysis of all aspects of the business. We consider a number of key factors that impact value – the company’s strengths and weaknesses, profitability, competitive and geographic factors, unique aspects of its products or services, and “intangible” aspects of the enterprise. Past performance is reviewed and future potential is assessed. We examine external factors such as the economy, industry trends, the mergers-and-acquisitions marketplace and current trends in the acquirer community. Our findings and conclusions are presented in a detailed report. |
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