Business Valuation

It is extremely important to determine the fair value of a Business you are planning to sell or purchase. Business valuation can be used to determine the fair value of a company for following reasons:

  • Business Acquisition
  • Business Purchase
  • Financing
  • Partnership
  • Divorce
  • Legal Cases

We provide Broker Opinion of Value, as part of our Listing process. Also, we can help you with business valuation either internal or by third party Business Valuation Analyst.

Valuation Factors Impacting the Value

There are many areas that must be considered for business valuation including Risk factors like customer concentration, reliance on vendor relationship, macroeconomic trend, industry trend, key employees, competition, legal exposures, Lease Term, sustainability of current customers and clients, and many more. But the most important factor is the business Revenue, Cash Flow, SDE, EBITDA, past trend and future growth.

Valuation Model

A Valuation Analyst applies variety of method as follows to determine exact value of a company and they weigh certain percentage on each one of these methods to come up with Normalized value of a company:

  • Cost Approach:
    Adjusted Book Value
  • Market Approach:
    Direct Market Data Model (DMDM)
  • Income Approach:
    Capitalization of Net Cash Flow
    Capitalization of Discretionary Earnings

We have a quick turnaround for valuation, please contact us