We often include informal company valuations as part of our sell-side, buy-side, and advisory services to enhance those
A valuation analysis report provides a sound basis and methodology for arriving at the fair market value of a privately held or closely held business.
Unlike public companies, closely held companies do not trade on stock exchanges, and therefore there is no market price quote that is suggestive of what the fair market value (FMV) of a business may be on any given day. Also, because financial information is not available for privately held businesses, finding a set of comparable private companies is not likely.
Therefore, when conducting a valuation analysis of a privately held company, various sets of data are used to determine the fair market value (FMV), such as historical financial results and performance of the company (earnings, assets and liabilities), financial projections, comparable public company data adjusted for practical considerations and differences, comparable transaction data, and an assessment of internal and external risk factors.
One of our added valuation levers is closely linked with our Advisory Services that works with buyers and sellers to identify additional avenues for revenue growth, improved market positioning and better cost structures that would enable for potentially better terms during the transaction process.