Running a business that is geared towards ongoing profitable growth involves being able to accurately determine the valuation of your business, and other businesses, and calculate how that value increases over time.
In order to make effective business development decisions, business owners can’t afford to skip this step. Our advisors are here to help you determine your business’ value and the value of businesses in your sphere. We can also be a reliable sounding board when you’re making decisions that will impact your company’s future.
Business valuation reports are essential internal tools for planning exits, acquisitions, and funding events. Often, your accountant or lawyer will not be familiar with the variety of business valuation methodologies used by Investors. There are a number of accepted company valuation approaches, all of which are helpful to know. Midstreet Capital will simplify the company valuation report process, and empower you with valuable information.
Our company valuation report tools include the following:
- Use of Pro forma technique and adjustments when presenting historical cash flow.
- Use of EBIDTA multiples as a way to present value.
- Use of run rate revenue and sales backlog factors to present current business performance.
- Use of Discounted Cash Flow and Net Present Value factors to support balance sheet asset values.
Business valuation should be considered a starting point for any transaction. The more informed the parties in a transaction are, the better the likelihood of a good deal. Of course, each party has different motivations, but fair market value is the price a seller will accept and a buyer will pay. Only the right buyer will pay the right price and business valuation is a complex process. Part art and part science, it relies on elaborate business metrics and intangible factors that only come with experience.
For more information about business valuation, book an appointment with us and let one of our experts help you.