Partners Need a Buy-Sell Agreement

Buy-Sell agreements need a valuation for a successful transition.

Get Value Right When it Counts

A buy-sell agreement is a legally binding document that determines how a partner or shareholder in a closely held business may purchase the interest of another partner or shareholder who withdraws from the business. Integrating a business valuation into a buy-sell agreement is often critical to ensuring that all shareholders are treated fairly and equitably if one executes the agreement. Likewise, the absence of a buy-sell often triggers a valuation during partnership disputes. Common Buy-Sell scenarios include:

There are many types of events that trigger the need for a valuation amongst shareholders. Those may include:
  • Shareholder disputes
  • Death of a shareholder
  • Insurance requirements

With regard to valuations of these types, our engagement is often guided by the terms laid out in the agreement when one exists. For instance, does the agreement provide for the application of Discounts for Control and Marketability? In other cases, we are calculating value on a control/marketable basis regardless of the characteristics of the block of shares valued.

Get a thorough and accurate business valuation, tailored to your needs, in weeks—not months.

What Makes Us Different:

A Tailored Approach

Our process is focused on the belief that all valuation cases are different, and there is no “one-size-fits-all” rule for what factors we consider most important.

Efficient & Effective

We insist on running a tight valuation process to ensure a high-quality result. No surprise, but as a veteran-owned and operated company, we are also hugely geared towards discipline and efficiency.

15 Years of Experience​

For most entrepreneurs, their company is their largest asset. For over 15 years, entrepreneurs have entrusted our expert consultation on a wide range of valuation and sell-side M&A matters.

Tight Turnarounds

Our goal is to complete every valuation in two weeks. We make every effort to get work back out to our clients as soon as possible so that our valuation is not standing in the way of your progress.

Our Process

We insist on running a tight valuation process to ensure a high-quality result. No surprise, but as a veteran-owned and operated company, we are also hugely geared towards discipline and efficiency.

While each assignment is different, the following are the steps you can usually expect when working with us:

Data Request

The actual request will certainly vary from case to case, but the core data request is usually somewhat similar. Ideally we want to see a five year period of data, with three years being the usual minimum. 

Initital Analysis

Once we have data, our analyst team will conduct what we call a “first pass analysis.” We’ll start looking at trending in the data, looking for variances, unusual items, positive and negative trends, and financial ratios. We’ll likely send you a detail of questions that we will want to cover during the management interview related to the data provided.

Management Interview

To really understand the value of a company, we need to marry the narrative to the numbers. To get there, we’ll conduct an interview with the client to get an in-depth understanding of what drives the business.

Rinse & Repeat

Sometimes we get to this point and we are ready to push to the finish line. But in many (if not most) cases the management interview will uncover more questions and result in more requests. We iterate the first three steps until we have an adequate understanding of the company.

Analysis & Modeling

The appraiser will analyze the company's normalized financial statements, and use the most appropriate valuation method. To arrive at a final estimate of value, the appraiser will reconcile the values derived in each of the valuation methods and combine them with appropriate discounts.

Document Findings

When a final valuation conclusion has been reached and all relevant information has been considered, the valuation report is delivered to the client. We thoroughly explain the report to our clients and their advisers and answer any questions to ensure a thorough understanding of our conclusions. 

Brief Out

For most of our assignments we’ll conduct a brief out with our client. (In some cases this isn’t appropriate or necessary – think a “date of death” report for probate) For the most part, though, we feel that the brief out is the most important element of the entire engagement.

Ready to Get Started?

Getting started is easy! Our straightforward pricing is a flat fee for most situations and is driven by the scope of work on a project. We’ll get in touch to understand your requirements, provide a quote, and get docs out to get the ball rolling.

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What our Clients Say:

Get a thorough and accurate business valuation, tailored to your needs, in weeks—not months.