Video

1.  Income Approach

Earnings is discounted to arrive at a valuation amount

2.  Market Approach 

Compare subject to similar businesses that have been sold

3.  Asset Approach

Evaluating the asset and liabilities on the books, most of the time used as the "floor" value of the company

1.  Better understand your Business Potential

2.  Target Areas for Improvement

3.  Minimize Value Gap

4.  Enhance Due Diligence in Preparation for Sale

5.  Properly plan for Retirement

6.  Prepare for taxable events such as Gifting or Grants

1.  Purpose of Evaluation

2.  Evaluation Date

3.  What is being evaluated? 

Company Shares, Company Assets, Intellectual Property

4.  Financial Information (at least 3 years)

5.  Risks of the Entity

5.  Projected Growth 

1.  Predicable Profits & Cash Flow (Dimension 1)

2.  Predictable Revenue Growth (Dimension 2)

3.  Predictable Equity Value (Dimension 3)

Market Drivers:  Growth, Recurring Revenue, Product Differentiation, Large Potential Market, Barriers to Entry, Brand, Dominant Market Share, Customer Diversification, Margin Advantage.

Operational Drivers:  Company, Operations, Human Resources, Financial, Customer Satisfaction, Legal, Sales & Marketing, Senior Management, Innovation

1.  De-risking

2.  Higher Valuation

3.  Flexibility in Timing your Exit

4.  Tax Minimization