Business valuations are needed for a variety of reasons including financial reporting, purchasing & selling of a business, mergers, buy/sell agreements, divestiture and spin-offs, corporate carve-outs, corporate re-organizations, stock options and incentives, collateral values for loans, succession planning and more.
HLB Hamt can prepare comprehensive valuation for a variety of businesses regardless of size and structure.
Business valuation is more of an art than a science
When valuing a business there are a number of issues to assess including
- The dynamics of the sector in which the company operates
- The unique attributes of the company and how the company compares with similar businesses
- The market perception of the business
Various business valuation models
There are various models available which will allow you to evaluate the value of a business. However, inputs to these models are based on judgment, which you will acquire from having hands-on experience. The estimated value of a business, when using any of these available models becomes the focal point at which to put a price tag on any business.
Asset based approaches
- Net assets value
- Book value
- Fair/ Market value
- Replacement cost
Market based approaches
- Market Multiples
- Comparable sale transaction
Income based approaches
- Discounted cash flow
- Capitalization rates using EBITDA or NOPLAT
We provide complete assistance throughout a merger or joint venture setup. From initiating dialogue with potential partners, setting of strategic directions to documentation and business plan, we will guide you every step of the way.
In short, we handle everything you need, so you’re free to concentrate on the bigger picture – your business.