THE VALUATION PORTFOLIO
If you are selling your business, seeking finance alternatives, or determining a valuation for planning reasons you need a template presenting your business in the best possible way.
Conversely, if you are on the hunt to bolt-on an acquisition, you should have established criteria that will allow you to succinctly judge an opportunity. This is an exercise that involves some if not all of the following:
- A workbook of spreadsheets that consolidate relevant historical financial data.
- A model that projects future income and cash flows (because that’s where value is really determined).
- A valuation that anticipates the expert appraisal of land and property improvements required for finance.
- Industry guidelines for similar businesses to include sales multiples and capitalization rates.
After you know what your company is worth, or what you are willing to pay for similar enterprises, we can help you design and execute a strategy that includes:
- Shield company identity while soliciting interest in the transaction
- Actively seek out buyers or sellers by compiling lists of potential counterparties and methodically contacting decision makers in person
- Value the candidates based upon financials, interviews, and industry metrics
- Provide templates for the documents often used between buyers and sellers
- Work with you to construct the due diligence requirements for closing
How something is sold is often as important as what is being sold. We include in our services suggestions for:
- Packaging your company – We create and customize your pitch books to each prospect
- Protecting disclosures of sensitive information
- Focusing on transactional aspects
- Managing buyers’ expectations for carrybacks, escrows, non-competes and common seller’s assurances
- Formulate the campaign
- Determine common denominators for valuations
- Evaluate personnel to stay with the acquisition
- Suggest how best to streamline contributions of professionals charging by the hour
WHAT WILL THIS COST?
We generally charge one price to conduct a valuation of your company and to financially model your goal. The amount serves the dual purpose of being a retainer.
Compensation is generally linked to achieving your objectives. If you wish to sell your company, and we can locate a buyer, structure a viable deal, and help you get the deal through due-diligence, we will charge a percentage of the transaction based on a sliding scale linked to size and pricing targets. The percentage for our fees runs between three and ten percent, depending on the particular facts of the transaction.