Business Valuations

Understanding your business worth is essential to the growth of your company. Assessing the true value of your company, whether you are buying, selling, building a succession plan, or assessing your corporate strategy. We provide comprehensive valuation services for a small to medium size private companies that assist with the long term strategic plan of your family and your business. Having worked closely with a wide range of industries, as well as specializing in the construction services industry, we bring a deep level of expertise and experience to every engagement, providing the clear, unbiased insight you need.

Why Should You get a Valuation?

Your company should have an accurate business valuation done and updated on a regular basis; from being buyer ready to financing or attracting capital, to attracting and retaining your key staff; developing a sound understanding of your organizational strategy.

Business Perspectives
Strategic and Operational Planning
Business Valuation Process
Components of a Business Valuation

Business Perspective

Knowing the worth of your business can help you get a big-picture view of your company's strengths, weaknesses, threats, and opportunities. Part of understanding your company's worth means looking at the business through the eyes of a potential buyer or investor. Some of the questions they may ask themselves include:

What is the financial health of the business? How has it performed over the last 3-5 years?
How does the business align with current and projected market trends?
Is there a strong team in place that can lead the business?
Does the company offer opportunities for greater efficiency?
Are there areas that need investment or upgrades?

Strategic & Operational Planning

Developing an effective strategic and operational plan for your business requires a complete understanding of the market and industry that you operate in. From the industry trends that may impact your business to global disruptions that are occurring right now it is important to create a meaningful, realistic, and results-oriented strategic plan is critical for your organization’s current and long term goals.

Valuation report and overall business critique
Business sale & acquisition
Corporate restructuring
Tax & estate planning (section 85, section 86, and estate freezes)
Succession planning & retirement
Business financing
Employee stock ownership plans (ESOP)
Management buy-outs (MBO)
Evaluation or establishment of an Advisory Board or Board of Directors

Business Valuation Process

The valuation of a business and its underlying assets, calls for a combination of science, experience and professional judgment that yields practical insight into the strategic, operational and financial affairs of the business. A number of factors both internal and external, tangible and intangible, quantitative and qualitative—can determine the value of your business. While these may vary according to the industry and type of company, the process typically involves the following steps.

Initial client meeting to discuss scope and requirements
Examine financial statements
Estimate, contract, and engagement letter for client approval
Documents provided by client
Business and industry analysis of market conditions and trends
Financial performance and outlook
Client discussions and interviews
Business valuation
Draft proposal for approval
Issue final report

Components of a Business Valuation

Financial Performance and Outlook

Average multiples and valuations can fluctuate across different industries. Consider your company's degree of sensitivity to the market and economic factors, such as new legislation, foreign exchange rates and tariffs, interest rates, energy costs, GDP growth, workforce changes and skill shortages, customer trends, and more.

Market Conditions and Trends for Business Valuations

Products and Services

Brand and Industry Reputation

Brand position is an intangible valuation factor, but an important one nonetheless. Your company's reputation in the market, quality of offerings, and ability to provide a good customer experience all support bottom-line profit—and therefore, the value of the company.

Management and Employees

A workforce that is skilled, agile, and experienced can contribute to your company's value. Your leadership team in particular can affect a valuation. Managers with strong industry experience and a track record of driving growth can mean less risk for a buyer—not to mention, offer greater potential for future profitability.

Technology and Equipment

Where does your company sit on the digital maturity scale? A business that is digitally advanced can be worth more than one that requires investment in modernization. Consider aspects such as cybersecurity, customer relationship management (CRM) programs, mobile or e-commerce capabilities, back-office systems, physical equipment, etc. Any proprietary technology your company holds can also be a value driver.

Being technologically advanced isn't limited to hardware and software. Having a workforce and a company culture that embraces the digital mindset and adapts quickly to change is key.

Customers and Clients

For companies operating in the construction industry and service-based companies especially, the strength of your client relationships, recuing contracts, and customer loyalty is important. A valuation will examine customer contracts, demographics, retention rates, market size, and more.

Consider the size and diversity of your customer or client base as well. A business that is highly dependent on just a few customers can present risk, which in turn can lower the value of the company.