BUSINESSPHD.COM

866-465-2570 dr@businessphd.com

A complex measurement process that identifies a company’s value either in terms of what it can provide to the current ownership in revenue or what it is worth to a potential investor or buyer.

“The single most economical and relevant tool to provide insight into the management needs of your company!”

Many business people make the mistake of using an accountant to perform this process. Why I feel this is a mistake is that few accountant types can actually put a value on anything intangible.  As a result of this you generally get a value that is greatly based on tangible assets instead of the basis of real value which should be the ability, or opportunity to create profit or income for the owner.

I have personally witnessed businesses valued by accountants sell for 2, 3 and 4 times what the accountant said they were worth and have also seen them struggle to get 1/2 or 1/3 what they determined to be the value.  However a good business consulting firm or intermediary valuation will almost always be within 15% of sale price. The key to choosing a good valuator is finding one that also performs Due Diligence assessments.

There are many good valuation software products available but they are much like golf clubs.  They are only as good as the person using them and the term “garbage in, garbage out!” has never been more truthful.

My involvement in business consulting began in the field of valuation as it is a major element in the due diligence, positioning, and structure management process. I pride myself on being a very astute valuator as it is the cornerstone and foundation of most all areas of my mentoring/consulting services.

The most competent and successful business owners realize that a valuation of their company is an irreplaceable tool for managing. A good valuation should be done at least every 5 years and many will have them done every 2 years.

An honest and useful valuation will provide 2 or 3 different values based on the type of buyer/investor that may be attracted and the valuator will outline the differences. This range of values will give you an excellent picture of the strength and prosperity available within your company.  In many cases with the smaller businesses this will be the eye opening experience that shows you that your business provides you with far more than you realize.

This process will take from three days to a couple weeks to perform and produce the final printed results. This is dependent upon many factors so the exact time frame needs to be flexible.  Confidentiality is a must between your valuator and yourself as you may reveal information that no one else knows, not even your accountant.  Personally I find this paramount and protect your information diligently. You must also keep in mind the valuation results are based on your total disclosure and complete honesty between you and your valuator.  If you provided false information or withhold information then the final product will be garbage.  Expect a lot of very personal questions and direct accusations if you want a good valuation.  Remember it should reveal to you the truth not tell you what you want to hear.

I am available to answer any questions you may have about this process and am also available to perform this service separate from the other areas of my mentoring.

__________________________________

For contact at your convenience to discuss what I can do for you please fill out the form below. Thanks!