Mergers and Acquisitions

Valuation and Market Analysis

"How much can I get for my business?" "What terms can I expect?" "What would be a fair price to offer for the purchase of a particular business?" A Business Valuation/Appraisal is the process of preparing a complete analysis of a company and estimating the Fair Market Value of a business as of a given date. The Valuation/Appraisal can be done for many reasons such as, to determine partner share, estimates for purchasing, selling, swapping, or dissolving part or all of a business, ESOP valuations, estate planning, etc.

There are several valuation methodologies used to calculate the value of a business.  In preparing a Business Valuation we will take into account numerous factors that may contribute to your company's value and risk such as the industry, financial history, future market forecasts, financial projections, and comparisons to other actual transactions or appraisals for similar companies. We offer two levels of Business Valuations: standard and comprehensive.

A standard Valuation can be done without the necessity of a site visit. After providing us with requested financial data, we will hold a conference call to review relevant risk factors and learn more about your business. After detailed evaluation and analysis, a written report will be issued. It includes a complete financial analysis with many financial ratios, balance sheet and income statement, detail explanations of the various approaches to value and what our estimated value range for your company. Phone consultation is included for explanations and questions.

A Comprehensive Business Valuation takes the standard valuation and extends it further. It will include a site visit and will take into account many other aspects of the business such as actual quality of assets, value of contracts, leases and market share. Naturally, a Comprehensive Business Valuation will give a more complete estimate of value.

In many situations an actual business valuation is not required, but you still want to know how much your business is worth. A valuation "certifies" the value and includes a 50 to 100 page report detailing the methodologies and processes taken to arrive at the value.  If the "formal" valuation is not required, the Wasmer Group can prepare a "market analysis".  In a market analysis we will go through the same valuation process and make the same calculations, however, we will not prepare a formal report and "certify" to the value. The market analysis can usually be done at a quarter of the cost of a formal valuation.

 

M & A

Valuation Preparation Prospecting Negotiations