A solid understanding of a company value is the foundation for much of the planning related to operating, selling or buying a business. Current value of a business is a benchmark for operating a business. And the value for a closely held company is the source for financial security for owners. And, of course, it is key to determining if a business can be profitably acquired.
Aetherian Group can provide an assessment of value for a business. An assessment of value provides value range from current financial information, using commonly accepted guidelines. A value assessment can be the basis for planning and for offering a business for sale.
An objective, professional valuation can be especially important. Realistic, objective assessment of a business provides guidance to both the business seller and an acquirer. Aetherian Group has access to professional expertise that provides benchmark data, assessment of market conditions within an industry, the general market within a region, and expert opinion as to fair market value. A professional valuation draws on extensive information on transactions involving similar companies. An in-depth professional valuation is preferred in many business plans.
The maximum value of a business comes when there is a special business fit between two companies. An assessment of each of the two companies, and an assessment of the businesses together will often indicate value that goes beyond independent assessment. Aetherian can help if this kind of valuation is indicated.
- What does a professional valuation do?
- Why conduct a professional valuation?
- What type is needed?
- Who to consider for a professional business valuation?
What does a professional valuation do?
An objective, professional business valuation provides solid data to key owners. A business valuation professional can provide advantage:
- Assure confidentiality - protect your personal and financial interests.
- Give qualified estimate of Fair Market Value – book value or investment value can be very different from the true fair market value.
- Providing Expert information - you can have confidence that the valuation is thorough and complies with accepted standards of professional practice.
- Give industry insight – the use of in-depth data sources provides comparisons of key performance factors, and shows how a given company performance might be viewed. This provides insight on comparable transaction values, and performance changes that might impact company value
- Deliver Qualified Valuation Staff - certification provides added assurance that the valuation analyst meets high professional standards and recognizes the need for specialized valuation knowledge and training.
- Defend for Potential Litigation - a complete and thorough valuation reduces questions and ambiguities which will reduce exposure to legal repercussions.
- Providing Third-Party Objectivity - most problems in business valuations arise from questions of independence and credibility when performed by biased advisors, and where personal and emotional issues influence decisions.
Why conduct a professional valuation?
Assessing business value is an important tool for successful operation and for effective preparation for a business transaction. Objective understanding of a business and how it compares with other companies in similar industries allows key executives to emphasize improvements and enhance overall value. When contemplating a change in ownership and control, an objective valuation provides guidance to current owners, to prospective owners, and for any debt holders supporting a transaction. Selecting valuation approaches along with proper analysis is required to achieve a effective valuation. This will include sophisticated calculations, ratio analysis, industry comparisons, economic and market analysis, relative business risk assessment, and other considerations.
When valuing a business it is important to have the assurance that the services you receive consider all the relevant information and facts so that you get the full economic benefit you deserve. Using a qualified business valuator will give you confidence, peace-of-mind, and the advantage of knowing you are working with solid information for improved operations, or for a change in business ownership.
What type is needed?
The value of a company depends on the type of operation or change being considered. The degree of control, the portion of company ownership involved and the purpose for valuation all have a significant impact on “true market value”. In addition, a company might represent strategic value that modifies “true market value”.
Special circumstances call for special valuations. Change in ownership, contingency planning, and recapitalization frequently calls for objective valuation. A trained and qualified valuation professional will assess the need and provide services to meet individual and business valuation requirements:
Who to consider for a business valuation?
When considering a business valuation, you should take care to choose the qualifications and experience to deliver what you require. Here are some important qualities to seek:
- Confidentiality and discretion
- Reputation and trust
- Expertise in business transactions and valuations
- Certifications and credentials
- Access to objective data on transaction values, by industry, region, and business size
We can help.
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