What’s It Worth?
Our analysis is built on two pillars: The Multiple Analysis and the Fundamental Analysis. The first one can be considered as the common sense analysis, in which we infer the enterprise value (EV) from its financial relation with other performance indicators such as sales, earnings before interest, tax and amortization, and earnings before interest and tax. This straightforward method is one of the best valuation practices considering its usefulness and reliability.
Multiple Analysis serves as a market valuation reference point to the Fundamental Analysis. The EV of any business, whether you are buying or selling, takes into account many factors. Among these factors include (but not limited to) cash flow, liquidity, emerging trends, business operations, and prevailing market conditions. Our fundamental analysis of the target business can help ensure that you receive or pay a fair market based price; often times we use earnings multiple analysis for companies with positive earnings, discounted cash flow analysis or comparable companies analysis to arrive at a valuation range.
Some of the ways we derive a value for your target business is to perform our analyses of:
Your sector, market, and niche
Performing necessary financial calculations and analyses
Accounting audits
Growth and credit profiles
Return on investments
Liquidity and Revenue Ratios analysis
Once we have determined the EV of the business you are selling/purchasing, we then move on to our creative methods for you to achieve your business goals.
