Know Your Value
What is Business Valuation?
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Business valuation is a process of understanding and quantifying the monetary value of a business. It provides owners with an objective eye regarding the economic value of their companies. Business owners who are seeking for business valuation services are mostly looking to sell part or all their business, sometimes, merge with another firm. The valuation process allows owners to know what the current worth of their companies through analyzing multifold factors of the business (e.g., corporate governance, prospective earnings, capital structure, and the market value of the assets).
How We Value Your Business?
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Our methodology of valuing your business contains four aspects (i.e., industry prospective, capital structure, financial sustainability, and corporate governance). By quantifying each of the factors, we are able to estimate the fair market value of your business in an objective manner, giving our clients a unique insight of their companies.
Industry Prospective
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Our specialized team can tell the prospective of every industry through an in-depth research and due diligence utilizing their analytic eyes and our most up to date database. We quantify our research on a quarterly basis to determine the CAGR (Compounded Annual Growth Rate) of the industry with analyst adjustments applied.
Capital Structure
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Our team can utilize the financial history of the firm to determine its IRR (Internal Rate of Return) and Cost of Capital. These figures provide owners an insight pertaining to the investment return and potential financing cost of the business. By incorporating this critical factor into our valuation process, we can provide our clients with an accurate assessment of the business value.
Financial Sustainability
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The business future is hard to predict, whereas it is relatively easy to predict the trend of the business. Our team can incorporate local population growth rates in different age cohort, household disposable income growth rate, demographic info, and other income-producing factors to determine the future earnings of a business.
Corporate Governance
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While quantitative data is critical to the valuation process, the importance of management is also worth noticing. Our valuation experts are able to quantify and incorporate the management system of a business into our valuation process, allowing our clients to understand the role of management within their company.