Many business owners don’t focus on assessing the value of their business until they are contemplating a sale. There are significant benefits to determining the value of your business well in advance of a sale, including:
- Planning for strategic growth,
- Developing a succession plan,
- Establishing financial controls,
- Creating a long-term sales plan, and
- Obtaining bank financing or alternative investments
Finding accurate comparable data and establishing a valuation baseline is difficult for owners because most M&A transactions are done on a private and confidential basis. That is where the Kaulkin Ginsberg strategic valuation assessment (SVA) comes in to play.
The SVA is aimed at providing ARM business owners with an understanding of value relative to current market conditions. By putting your business through an SVA, and doing so well in advance of a potential sale or succession, you will be better positioned to maximize your company’s value and realize your desired outcome.
The experts at Kaulkin Ginsberg will evaluate your company’s financial and operational performance relative to the economic and industry market conditions. They will:
- Review historical, current, and projected financial and operational performance from the perspective of a buyer;
- Analyze the business’ enterprise value in today’s market relative to proprietary transaction and market data;
- Examine critical documents to get together in advance of a sale and review for any potential issues;
- Explore business factors that add to or detract from value, and offer ways to enhance value; and
- Monitor the company’s performance throughout the year and update ownership on market changes
Things you can do now, on your own, at no cost
There are certain documents that all owners should have in place before engaging in discussions with perspective buyers. These include a complete set of historical financial statements, a current year-budget to actual statement, an updated client list, client contracts, a current organizational chart, articles of incorporation, partnership agreements, insurance policies, lease documents, vendor contracts, and employment contracts (if they exist).
Our experts are available to help you prepare the following documents from the viewpoint of a perspective buyer:
- Client contribution reports
- Sales pipeline
- Multi-year forecast with a rock-solid basis of assumptions
- Normalized (or adjusted) income statement to reflect the true profitability of the business
The SVA will enable you and your partners to make a well-informed decision, whether it be to sell the business now or at some point in the future, position it for succession, or focus on improving profitability. Our experts will leverage the assessment to evaluate your company’s strengths, identify weaknesses and threats, and provide recommendations on opportunities to grow value. By mitigating risks related to factors outside of the companies control and improving on those within its control, your company will be positioned for success – regardless of the route you choose.
Regardless of your desired outcome, our team of professionals is prepared to work with you to ensure that the business is well positioned to maximize value. Please contact us at HQ@kaulkin.com for a free and confidential consultation.