• Upstate New York
• Privately-held
• Revenues $1-30 million
• Corporate Divestitures: parent company public or privately-held

• Location local in Upstate NY or worldwide
• Public or private entity
• Corporate buyer
• Personal buyer with entrepreneurial experience

IBV Insights        

What's it Worth?

Do you know the market value of your company? Is this important to you?

If it is, it is essential to understand what drives value in a business.  There are qualitative as well as quantitative elements in valuing a business.  

The quantitative elements appear to be easier to determine than the qualitative ones.  That's not always the case.  Often an experienced valuation expert must recast the financials to accurately assess the free cash flow, and excess owner's compensation, which are key determinants of value.  

Evaluating the qualitative aspects of business value require a keen understanding of the current business landscape.  They include factors such as quality and size of the customer base, depth and expertise in the management team, number and types of competitors, market size and share, patents or proprietary products or processes, among numerous other factors that may be germane to the specific business.  These individual factors are given a value that either positively or negatively impacts the number derived from assessing the financials.  That value must be defensible to whomever is financing the deal.

Valuing a business to determine a fair market price range can differ widely from business valuations for other purposes, such as estate planning. Also, a valuation that determines a company's accurate fair market value cannot be based merely on "rules of thumb," such as a multiple of revenues or EBITDA.

 As a business owner who has invested years of your life and has more than likely put personal assets on the line to buy or build the company, are you willing to use a "rule of thumb" to asses your company's worth?  Aren't all the years of effort and risk worth every penny in return on your investment when it's time to sell?

Don't leave money on the table!  Contact us if you are interested in selling your business for the best price, to the right buyer.  As mergers and acquisition specialists, we are also valuation experts!