Why Value a business? There are many reasons that a business owner would want to do a periodic valuation study of his or her business.
Some of the more common reasons would be:
Potential Sale of the Business
Estate and Gift Tax purposes
Buy Sell Agreements among shareholders
Employee Stock Incentive Plans
PCO M&A Specialists can assemble a comprehensive valuation report which provides an opinion of value of your firm at a given point in time to be used for the above purposes. Our process includes research and analysis of all pertinent information including financial modeling and market analysis. The result is a comprehensive valuation report that examines the business value as well as key industry benchmarks and cost analysis prepared in accordance with American Society of Appraisers (ASA) guidelines.
In addition to the theoretical value engineered for the above engagements, we also are heavily involved in the M&A space for pest management companies. Many times, the Fair Market Value (FMV) will be different than the theoretical value calculated above. We can help you determine the FMV at a given point in time as well as help you with marketing the company for sale.
Our goal is to help you understand the differing valuation theories and compare them to how the strategic acquirers look at valuation, generally referred to as Investment Value. And… there is a difference.
The multiples you see in the press are simply high-level ratios that participants can point to when explaining value relative to other comparable (or not so comparable) transactions. They do NOT drive decisions made by acquiring companies. PCO M&A Advisors can help you uncover the true, value-driving performance indicators, because we’ve studied them with real clients and used them to help our clients improve their profitability whether it’s for running their businesses the best they can or to make them the most attractive target among many others.