Businesses may be valued for various purposes, including mergers and acquisitions (M&A), matrimonial dissolution, estate and gift, shareholder disputes, economic damages, and other purposes. In addition to valuing entire businesses, we also commonly value stock options, restricted stock units, debt, and various other types of financial securities.
We have valued hundreds of businesses ranging from local main street businesses to multi-billion dollar global organizations.
We issue an initial document request asking for the basic financial, legal, and business documents. These requests may be in the form of a formal subpoena or discovery request through counsel if for litigation purposes, or an informal request if for M&A purposes.
The tax returns, financial statements, ownership agreements, and all other documents are analyzed in detail to assess the status of the business and further document needs. Possible normalization adjustments to historical revenue and expenses will be identified.
Interview & Site Visit
The owner and possibly the key management will be interviewed to assess historical performance and expected future results.
Upon considering all valuation methodologies available, the most appropriate methods will be undertaken, in combination with assessment of non-operating assets and liabilities and valuation discounts, if applicable.
Issuance of Calculations / Report
The valuation calculations are summarized in either a short preliminary report for settlement purposes if in litigation or M&A purposes, or a formal long-form report for submission to the court at trial. Draft reports are typically issued prior to the finalization of the report.
There are three primary approaches to value a business, and multiple valuation methodologies under each approach. The ultimate conclusion of value will be based upon the most relevant fact-specific methodologies.
The income approach focuses on valuing the future income of a company. The typical methodologies include the Single Period Capitalization Method and Discounted Cash Flow Method.
Sales of business interests are analyzed in the market approach, valuation multiples are derived and then applied to the company being valued. Comparable businesses interests are found through queries of transaction databases, publicly traded companies, or other means.
The asset approach primarily focuses on valuing the tangible assets and liabilities of the company. It typically does not include a value for intangible assets, such as institutional goodwill, patents, trademarks, etc.
Hedge Fund Interests
Private Equity Fund Interests
Venture Capital Firms
Real Estate Management and Holding Companies
Entertainment / TV / Movie Production
Fast Food / Fast Casual
Leisure / Travel
Gambling & Entertainment
Hotels / Motels
Construction / Building
Computer Programming / Software Development
Many more companies - please inquire as to relevant experience