Our Valuation Process
How We Do It
Examples of the steps we take to perform a valuation include:
1.) Review and verify financial information
- Accounting records
- Financial statements
- Tax Returns
- Bank Statements
2.) Identification of the assets & liabilities
- Inspection of the physical assets
- A listing of outstanding business debts
- Analysis of pending legal proceedings, if outstanding
- Terms and conditions of any lease agreements
3.) Identify the value drivers of the target business
- Established customer base
- Understand how the business makes money
- Identify what the business is lacking
- Key employees
Methods used for valuation:
- Discounted Cash Flow: Determine the present value of a company’s future cash flows
- Asset-Driven: Value a company based solely on its net assets (total assets less total liabilities)
- Market Approach: Determine a company (or asset) value based on comparable company (asset) values