Valuation
Would your company be for sale at the "right price?"
Knowing how the market would likely value the company is the first step to exploring that question.
Not surprisingly, the most common reason for valuing a company is preparation for sale, however a business may be appraised for a variety of reasons. Some of the other common reasons would be:
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Establishing a baseline value as part of a strategic planning initiative to build and measure enterprise value (it's hard to determine progress without measurement)
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Preparation for merger
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Personal estate planning and wealth management
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"Gifting" a portion or all of the business to others
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Partnership splits, divorce settlements
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Estate settlement after death
Different reasons for valuation mandate different valuation processes.
For instance, when an "Opinion Of Most Probable Selling Price (MPSP)" value is established to sell a privately-held company to a third party buyer, the objective is to determine an asking price and selling strategy. Ultimately, the free market determines the actual value in the form of an "arms-length" negotiated sale price.
While there are many similarities, the process for that valuation type is different than valuation for the purpose of litigation or non-arms length transactions such as succession planning, selling to employees, or partnership splits, in which there is no free market determination of actual value.
We provide valuation services to meet all the various needs of privately-held companies.
We welcome the opportunity to work with financial advisors, estate planners, attorneys and accountants to help company owners assess their potential wealth tied up in their companies.
Please contact Dick Bransford at (925) 838-8150, or via email if you are interested in understanding your company's value, or if you are an advisor to a company owner. |