If you have thought about selling your business, or if you think this is something you may consider within the next several years, getting an Opinion of Value now can help educate you on the range of value your business is approximately worth. Unlike a full valuation, an Opinion of Value is used to provide a guide and understanding of value versus a complete analysis used in dispute resolution and other legal requirements.
Your hope is that you are building something of value, but you need to know you are on-track in order to realistically unlock the likely value you will receive at closing.
Understanding a value range can help you make adjustments that improve on your company’s value proposition before you need or want to sell.
An Opinion of Value will help you understand your business value as it is viewed by prospective acquirers – not just by you. The idea is to make sure that the value of what is probably your largest and most important source of equity will be what you need it to be when the time comes to sell your business.
Calder Associates offers an Opinion of Value based on preliminary financial and operational information you provide. Determining value is more than just looking at your financial statements and tax returns. We know the factors that determine value. We look at areas such as organization, customers, technology, industry potential and more in order to qualify and determine value.
The selling price for most businesses is often calculated on a multiple of a company’s past earnings. We calculate your EBITDA (earnings before interest, taxes, depreciation and amortization) and determine the most appropriate multiple range to use. The multiples of EBITDA are determined by the strength of the business, looking at comparable sold businesses, industry norms, as well as current market conditions.
Calder Associates provides over 100 businesses each year with information that allows owners to estimate their future financial resources. Contact us to learn more!