Analysis & Valuation to Sell a Business
“You cannot enhance the value of anything unless you really understand how value is derived.”
“You cannot negotiate the sale of anything without knowing its real value…to you, and to the buyer.”
This is the starting point of the process. It is the stage when you really need answers to the following questions.
- What is the real value your business in the marketplace?
- What are its strengths & weaknesses?
- What is the direction of the business… growing, declining, or stagnating?
- Are there barriers to a sale –legal, operational, or shareholders?
- What is happening in the market place? Are there several buyers looking for businesses like mine?
- In order to answer these questions we complete the following…
An in-depth Assessment of Trends of…
- Five years financial statements – income and balance sheet
- Calculation of key financial ratios & comparison with industry
- Analysis of key commercial & operational indicators
- Assessment of sales by type of customer, industry and product service
An Expert Review of...
- An economic review of the general economy, local economy and the industry market
- Market structure
- Economic model & margins
- Competition
- Organizational strength & capability
- Sales & marketing strategy
- Production/Service delivery
- Suppliers
- Facilities & fixed assets
- Forecast & three year projection of the company’s financial performance
- Analysis of recent M&A transactions in the same industry
Once this analysis is complete, we can estimate value, identify strengths & weaknesses, and confirm the relative attractiveness of the current buyer market.
