VALUATIONS FOR

PURCHASING A BUSINESS
AND SELLING A BUSINESS

Purchases and Sales

Why is it so important to retain a professional valuation PRIOR to engaging in purchase or sale negotiations? Because knowledge is power. Without having a baseline understanding of value, you enter negotiations at a distinct disadvantage. Business valuations form the basis of pricing in both purchasing a business and selling a business. Quantive participates in this process in a wide variety of manners. Considerations often include:

  • What is the standard of value? For example, are we analyzing the concern at Fair Market Value? Or are we pricing in synergistic opportunities and analyzing Investment Value?
  • Are their premiums or discounts involved? For instance, is the block of shares a non-controlling interest? What discount is appropriate?
  • What is the benefit stream? In every engagement we analyze the financial statements for “normalizing adjustments.” In many cases a company may have one time (example: excess legal fees from an unusual lawsuit) or non-operational (example: excess owner compensation or perks) – these adjustments are necessary to present a fair and holistic view of the business.

Regardless of the above, our goal is to provide a thoroughly reasoned, well supported report that shows not only the value calculated, but also the framework and underlying assumptions that go into the development of value.

Examples

  • Business Sales

  • SBA Financing

  • Purchase or Sale

  • Mergers and Acquisitions

  • Stock Options
  • Purchase Price Allocation

  • Buy/Sell Agreements

  • Private Placements

  • Venture Capital Funding

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More Types of
Business Valuation Purposes

INSURANCE

Quantive values companies for a variety of reasons related to insurance to include establishing values for funding buy-sell agreements.

OTHER

We perform valuations for business planning, gap analysis, lost profits and damages, and a variety of other reasons.

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