Business Valuation Services
The Proven Strategy to Understand the Value of your Business and Plan for your Future
Understand your Business’s True Worth: Why Business Valuation Matters
As a business owner, understanding your company’s value is paramount. A Business Valuation isn’t just a financial exercise; it’s a strategic tool that aids critical decisions. A Business Valuation completed by a M&A Business Broker or Certified Valuation Analyst can help with Exit Planning, Pricing for Ownership Changes, and simply making strategic decisions for your company that will increase the value.
Exit Equity has several experts on staff to assist with type of Valuation you need. All of our Business Valuation reports are accurate and easy to understand. Contact our team to see how we can assist in a Business Valuation exercise so you understand what your business is worth.
Our Credentials
A Business Valuation prevents you from leaving money on the table when it comes to:
- Business Acquisitions by Private Equity, Individual Buyers or Competitors
- Estate and succession planning for a family-owned business
- Buy-in or Buy-Out of a Key Employee, Business Partner or Family Member
- Sale of a privately held business to fund retirement, a new start-up, or major life event
Business Valuation Report Options
Exit Equity offers different reports based on your need and use case:
Broker’s Opinion of Value
Receiving an Opinion of value is ideal for exit planning, succession planning, wealth management planning. A Broker’s Opinion of Value is our main offering, as this report is used to determine the Most-Probably Sales Price for a business. This type of Valuation report is performed by one of our business brokers or experts that hold an MBA, CBI or NAVCA certification.
A Certified Business Valuation
A Conclusion of Value (or Calculation of Value) is performed by a Certified Valuation Analyst (CVA) -the world’s premier valuation credential. This type of Business Valuation report is ideal for Tax Reporting, Shareholder Dispute, Compliance, and Legal Proceedings (i.e. Divorce, Trust, Estate) where the valuation may be evidence in an arbitration or court proceeding. This type of business valuation is only performed by our NAVCA Valuation Analysts.
With either valuation offering,
you’ll receive:
- The Fair Market Value of your business
- The ‘Net-to-You’–what cash you will receive at the end of the transaction
- What expenses can be considered ‘add-backs’ (items that ultimately increase your valuation)
- What like-kind companies have sold for in the past
- What valuation methods are commonly used in your industry, and how they apply to you
- What value drivers help and hurt your business value
- Ways to increase the value of your business
Ready to know the value of the business?
Our experienced team of intermediaries are ready to help you confidentially take your next step.
Why Choose Exit Equity for a Valuation?
Hear what Exit Equity’s past clients say about our business valuation work.
Our family run manufacturing business is ready for its next chapter and we were unclear on which steps to take and how to take them. [The team at Exit Equity] came in and quickly understood the complexities of the business, respected the family dynamics and was able to guide all parties through both a valuation and a successful transition.. The best decision we made for our family and our company was to work with Exit Equity.
– Julia Gilroy Family Owned Business
While no one can predict the future with absolute certainty, the rich detail and supporting context found in the Broker’s Opinion of Value provided by Exit Equity allowed us to confidently chart our course for the next couple of years. For the depth of research, the relevancy of the comparables, and the relative speed of delivery, we also feel that we received excellent value for the price. The fact that the valuation was such a successful process for us, we’d certainly consider Exit Equity again when we reach the next stage of this adventure.
-Digital Marketing Agency Founder
I called numerous brokers and was very impressed by the professionalism and thoroughness that Exit Equity provided us. They really took the time to understand our needs and the final valuation came at a fair representation of the work we put into it through the years. I would HIGHLY recommend their services to any business owners wanting to understand their numbers and what it would actually look like to sell a business.
– F.B. , founder and owner of a Business Services business
Business Valuation Process
Our business valuation is completed in four simple steps.
1) Schedule a free and confidential consultation to determine what type of valuation is needed, price and timeline
3) Participate in 1-2 informational meetings so our analyst understands your business and value drivers
2) Provide requested information to analyst—both quantitative and qualitative
4) Meet with your Exit Equity team for a 60-90 minute valuation presentation- a time to ask questions, identify actions and next steps based off your goals
Frequently Asked Questions
Q. How much does a valuation cost?
A.) Exit Equity offers a firm fixed price for a valuation. A typical valuation takes between 15 and 30 hours, at times up to 45 hours. The total amount of hours needed to complete the valuation depends on the complexity of the business (messy books, multiple subsidiaries, multiple currencies, etc), the type of valuation, and the qualification level of the analyst required to complete an accurate and robust valuation. Once a client needs assessment has been completed, our team can quickly prepare a quotation for a valuation.
Q. I see that I can receive a free valuation through other parties and apps. Why do you charge a fee?
A.) Every business is different, each has its own unique set of challenges and history. We produce bespoke valuations for each client based on market conditions, financial statements, current threats, and opportunities to grow. The typical valuation takes between 20 and 30 hours to complete.
We charge a fee to fairly compensate our staff for the work and knowledge it takes to complete the valuation. Like all things in life, you get what you pay for in terms of quality and customer service when the price is set to zero.
Q. What is the typical input to create a business valuation?
A.) Annual and trailing 36-month income statement and balance sheets, tax returns, accounts receivable aging list, and a self-assessment questionnaire, One to two conference calls with the client to understand their business, industry, and market, add-backs, and intricacies of the input documents.
Other inputs may include real estate information, lease terms, segmentation of customers/revenue/churn, top competitors, list of equipment assets, past and forecasted revenue and capital expenditures (CAPEX), terms of long-term debt, website traffic & history, distributor agreements, supply agreements, and/or intellectual property.
Q. What valuation methodologies do you use?
A.) We analyze a company’s value based on the cost, market, and income approach. Depending on the business and industry, this could include comparables businesses sold, rule of thumb multiples (EBITDA and seller’s discretionary earnings), real estate, the net present value of discounted free cash flow, and purchase method.
For technology business valuations, we may also consider monthly/annual recurring revenue, churn rate, customer acquisition cost, intellectual property/trade secrets, and customer lifetime value when determining the appropriate multiple.
Q. What is the typical output of a business valuation
A.) Video or in-person meeting to review the potential valuation range based on the methodologies named above, and a 10-20 page report summarizing our analysis. The report will include:
- The Fair Market Value of your business (open market value)
- ‘Net-to-You’–the cash you will receive at the end of the transaction (considering net working capital, long-term debt, and/or transaction fees)
- Expenses that can be considered ‘add-backs’ to improve the net income, EBITDA, and SDE calculations
- Comparable like-kind companies that have sold in the past
- Methods for the valuation range that are commonly used in your industry, and how they apply to you
- Value drivers help and hurt your business
- Strategies and tactics to grow the value of your business
Q. What types of Business Valuations do you offer?
We offer Manufacturing Business Valuations.
Exit Equity also offers Technology Business Valuations.