Business Value Estimate
A company is the lifeblood of a family; the fruit of many years of hard labor. At some point most business owners will encounter a reason for needing a business valuation. Selling (or buying) a business, transitioning ownership to a family member, reporting estate taxes and handling shareholder/partner buyouts are just a few scenarios in which a value analysis is required.
In the case of a business sale, the owner will need to establish value in order to plan an orderly exit strategy. It is a critical and essential step in the exit planning process. Similarly, a buyer of a business must complete a value analysis before pursuing a potential deal.
The Independence Group’s team of experts will evaluate the company in the following ways:
- Review historic financial trends
- Look at comparable historic transactions
- Look at adjustments that are “one-time,” non-recurring or not directly related to business operations
- Look at similar companies currently available for sale
- Evaluate economic trends of the target company’s industry
- Review risk factors to evaluate target company compared to its industry
- Determine who will be in the probable buyer pool
- Establish an expected value range
The fee for conducting a Value Estimate is typically in the range of $3,000-$3,500. This includes in-depth interaction and/or on-site meetings with the client as needed. In the event that The Independence Group assists the client in a completed transaction, this fee will offset other contingent fees upon a successful closing. This fee also often includes an in-depth financial report with recommendations to improve the financial health of the organization.