Many business owners think they know what their business is worth. But they often rely on informal methodologies, such as a simple formulas, to determine the value of their business. That can mislead the owner while making one of the most important financial decisions in their life – to sell or not to sell their business.
It is critical to the success of your financial and business planning that you thoroughly understand the value of what is potentially your largest asset. The process of determining business value is frequently met with frustration and confusion by business owners because of the complexity.
Legacy Partners brings clarity to the business valuation process.
Our world class valuation team has global experience across industries. We perform an in-depth quantitative and qualitative analysis to compute the market value of your company for transaction purposes. We focus not only on the numbers, but also the intangible assets that drive value and ultimately make your company stand out from the competition when you go to market.
Our valuation team has extensive financial modeling, risk analysis, and market experience to provide you with an accurate transaction value to make informed decision based on real data.
Understanding your business value will:
Note that the ultimate value of your business will always be what a buyer is willing to pay, which will be driven by the quality of your mergers and acquisitions team as you execute your Master Exit Plan.
Discounted Cash Flow
and is considered the most comprehensive approach, demanding significant financial modeling experience. This methodology requires normalizing your financial statements by recasting the historical financials for the owner’s discretionary expenses and one-time or extraordinary expenses. A 5-year pro forma is then created, discounting future earnings based on a discount rate which reflects your company’s risk and in addition computes the residual value.
Comparable Company Analysis
Adjusted Net Asset Approach
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