Overview
Why is it so important to retain a professional valuation PRIOR to engaging in purchase or sale negotiations? Because knowledge is power. Without having a baseline understanding of value, you enter negotiations at a distinct disadvantage. Business valuations form the basis of pricing in both purchasing a business and selling a business. Quantive participates in this process in a wide variety of manners. Considerations often include:
- What is the standard of value? For example, are we analyzing the concern at Fair Market Value? Or are we pricing in synergistic opportunities and analyzing Investment Value?
- Are their premiums or discounts involved? For instance, is the block of shares a non-controlling interest? What discount is appropriate?
- What is the benefit stream? In every engagement, we analyze the financial statements for “normalizing adjustments.” In many cases a company may have one time (example: excess legal fees from an unusual lawsuit) or non-operational (example: excess owner compensation or perks) these adjustments are necessary to present a fair and holistic view of the business.
Regardless of the above, our goal is to provide a thoroughly reasoned, well-supported report that shows not only the value calculated but also the framework and underlying assumptions that go into the development of value.
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Recent Valuation Work:
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