The Valuation

For buying or selling the valuation of the business is critical. The old days of just saying that the business is valued at some form of multiples is over. It is much more complex that that. We can have a company making lots of money so should be valuable. But it has a horrible human resource back ground. So law suits may be pending. We can have a company with poor historical performance but is now sitting on technology that could make them very profitable. In both cases the old methods of valuation do not work.

We do corporate valuations that go into great detail to come up with a valuation that will survive detailed scrutiny. Our valuation recognizes the strength and weaknesses of the business. If the indicated value does not equal the expectation of our client then an action plan will follow.

If you are a seller then the valuation can in fact weaponize your asking price. With a strong detailed valuation the price does not become an issue.

If you plan on selling in a few years then a current valuation now can be very valuable.

You can work on the corporate weaknesses and update your valuation each year. You will have the ability to build your value year by year until the day comes that you will sell.