Business Valuation

Every business owner wants to know - "what's my company worth?"

In addition to a natural curiosity about the value of our companies, we need knowledge about our company's value to make decisions about taxes, employee stock options, business plans, merges, acquisitions, and strategic alliances.

The most difficult part of valuing a company is understanding that the process is very subjective and varies depending on the purpose of the valuation. Valuations performed for tax purposes, financial reporting purposes, divorces, or a merger or acquisition could all result in different value conclusions about the worth of the company.

Value conclusions for software companies largely depend on qualitative, not quantitative, analysis of the company. The story behind a financial metric is more important than the actual numerical result. This story includes all the underlying factors such as market synergy, technology, patents, distribution, user base, and not least - The Management team.

The buyer who will normally pay the most for your company is the one with the most synergies, the one for whom the purchase of your company will generate the most sales and earnings. This is why earnings focused valuation methods, especially discounted cash flow models, are used most often.

Members of The Management's team have a long experience and expertise in the methods commonly used to value companies. Some methods are focused on the company's assets and others are focused on similar or comparable companies. There are also methods focused on the earnings or cash flow generated by the company.

Corporate StructureM&A ManagementDue DiligenceDeal Structure