It seems like a simple question but a valuation can be needed for a variety of reasons, including:
1. Considering a sale
Business owners often have a sense of what their company is worth, but their analysis is limited solely to intuition. Selling a company is a once in a lifetime event and is no time to cut corners. We work with business owners to provide assurance that they are receiving fair compensation for what is likely their largest asset.
2. Preparing for a Sale
Buyers of businesses scrutinize financial performance and risk to advantageously lower purchase price. At the same time, they are looking for ways that they can maximize their investment through unlocking “trapped value.” We work with business owners in advance of a sale to prepare a company so that any “trapped value” can be realized by the business owner through the proactive identification, management and reduction of perceived risk.
3. To Pursue Opportunities
Companies that create value are afforded more opportunities to grow. Many companies have identified growth areas but are constrained in their pursuits by a lack of available capital. Operational enhancements can unlock access to capital, and increase borrowing capacity from third-party providers. We work with business owners to optimize capital structure and cash flow, and improve access to capital for value-enhancing pursuits.
Interested in learning more about the importance of pursuing a valuation? Flip through the SlideShare below:
Our team of professionals has more than 100 years of combined experience across a broad range of industries. In addition to our investment banking advisory services, we have performed and supervised over 500 valuations of privately-held companies.