|
Mergers, Acquisitions and Divestitures |
Raise Capital |
Business Valuation+
AssessmentSM
| No two businesses are alike. |
 |
Every decision along the
business lifecycle – e.g. acquire asset(s), establish channel(s),
secure agreement(s), etc. – will either add or detract from the
value of a company.
Astute management teams
manage their financial performance & position through careful
measurement of their financial ratios. This provides critical
operational information to deliver profitable results. Yet, how does
the business create increasing value for an eventual sale? Profit is
only one key to value.
Business valuations are
neither a ‘back of the napkin’ calculation nor are they based on
standard industry multiples. Quick approaches to a business’
specific value are risky when there’s a lot of money at
stake.
A business valuation
– when buying and selling companies – is only valuable if it
provides insight to the risks of an acquisition or a
sale.
Educate yourself
on the difference – Different valuations accomplish different
objectives.
| Group A valuations |
Group B
valuations |
|
1. Estate tax
2.
Gift tax
3.
Marital separation
4.
Legal entity restructuring
5.
Goodwill impairment 6. Economic
damages |
1.
Business Divestiture/Sale
2.
Business Acquisition
3.
Business Merger
4.
Buy/Sell Agreements
6.
Capital raise
6.
Equity infusion 7. Business
Recapitalization |
Group
A
The objective independent appraiser provides
valuations for marital separations, estate tax filings, legal
entity restructuring elections (e.g. S Corporation elections),
economic damages assessments and goodwill impairment
opinions. These skills are different than the expertise
required from advocates who structure and negotiate business
transfers.
Group
B
When people buy or sell companies, they usually seek
advocates, not objective independent
appraisers.
Group B valuations require in depth analyses to
determine ‘fit’ and crystal clarity for both
parties in a business transaction; the financial and business logic must hold
together like a strong lattice fence. Regulatory bodies
require Group A valuations which are fully incorporated in the Business
Valuation+ AssessmentSM.
|
Client
Type |
Business Lifecycle
Point in
Time
|
Client’s Goals and
Objectives |
Business
Valuation+ AssessmentSM
Provides |
|
Buyer |
Invest
Phase |
Acquire
a business and obtain a saving for the business
investment |
Knowledge
of affordability and the need for additional
capital
|
|
Seller |
Harvest
Phase |
Grow
the business’ assets and position for an eventual sale at an
attractive premium |
Knowledge
of whether value is being created or not. While time is still
available, gain an understanding of what might have to change
to maximize the value.
|
|
Seller |
Divest
Phase |
Obtain
a premium value for the business
investment |
Knowledge
of the Business’ Net WorthSM
and insight to the real value.
|
We help our clients determine
what’s fair and equitable. Our clients tell us that we become the
‘insurance policy’ to provide peace of mind so they are positioned
for success.
Do you know
where you stand?
Contact us for a confidential discussion
about your situation.
| 
