Market Value Estimation

Values for companies exist along a spectrum. Compared to peers, some companies are worth more than others.

Determining Current Market Value

Our role is to determine where your company currently sits along that spectrum. You will have an experienced valuation analyst assigned to your project. To determine the CMV we’ll rely on traditional valuation approaches and models.

Adjustments to Financials

Accounting in most privately held companies is not GAAP compliant. And even when it is, there are often timing issues, one-time expenses, or discontinued operations that should be adjusted out of your financial statements. Our experienced analysts work this this process to identify the “real” company we are valuing.

The Most Accepted Valuation Approaches

Market Approach

We’ll develop a basket of comparable company transactions to use in assessing the value of your company.

Income Approach

In using the income approach your analyst will develop a risk rate – called a Discount Rate – custom tailored to your firm.   The Discount Rate will then be used in a discounted cash flow or capitalization of earnings model in order to determine the value of the firm.

The Asset Approach

The Asset Approach frequently is not useful in determining value for high performing companies. If the situation warrants it, your analyst will use the Asset Approach to calculate value.

Your Current Market Value

Once we’ve crunched the numbers we’ll understand where your company currently sits in the spectrum of value.

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