Strategic Business Valuation Process
What’s Your Business Worth? …More Importantly…What Could it be Worth?
Nearly 98% of business owners have not had a business valuation…and the value and ultimate transfer of the business typically represents the key to achieving life plans. While, formal valuations are sometimes required (Estate & gift taxes, SBA loans and litigation purposes), they are a deterrent for many business owners…they are expensive…usually a minimum of at least $7.5k to $10k, and the delivery process is painfully long…usually 30 to 90 days, if not more….and they also have limited strategic use.
A Cost-Effective, Efficient and Strategic Solution Starting At $2,500
Our valuation experts have developed a comprehensive and strategic growth-focused business valuation process intended to determine business value and maximize it. Our process includes the following:
Baseline Business Valuation – We perform a comprehensive analysis and 30-page report of what your business is worth today based on four distinct and useful estimates of fair market value including asset value (asset deal), equity value (stock deal), enterprise value and liquidation value.
Key Performance Indicators (KPIs) – The report includes a KPI analysis based on company-specific data, which is compared to industry-specific averages associated with millions of other businesses. These KPIs, commonly used by private equity groups, are useful measures of the overall financial and operational health and growth of your business and they should be checked regularly in order to identify meaningful trends or “red flags” which may require corrective action.
Business Value Driver Assessment – We evaluate 18 internal and external drivers of your company’s value with a strategic focus on how you can grow the company, reduce company- specific risk, and maximize business value. The assessment can be followed up with a Deep Dive “mini-retreat” analysis to develop an actionable and detailed strategic plan for your success.
Ownership Dependency Assessment – Owner dependency is key factor in the ultimate transfer of a business. We perform an assessment that lets you know how dependent the business is on your individual efforts in the following 8 categories: owner involvement, internal operations, strategy and planning, governance and ownership, financial matters, performance management, sales and business development, and company culture.
Transition Readiness Assessment – Transition planning is simply strategic planning. We provide a measurement of how you rank on our proprietary chart for your financial and mental readiness for a future business transition.
FAZ Strategic Advisors Strategic Business Valuation Preliminary Document Request
- Last 3 Years of Financial Statements
(Preferably Prepared by an Outside Independent CPA) - Last 3 Years of Federal Tax Returns
(Forms 1065, 1120, 1120s or Schedule C) - Current Interim Financial Statements
(Income Statement and Balance Sheet) - 3 to 5 Year Financial Projections (if available)
(Need to Determine Expected Long-Term Revenue Growth and EBITDA Margin)
These items will be used to prepare a management questionnaire, which in turn will be used along with the above documents to perform the required strategic business valuation work. Additional documents will be requested depending on the type of company under evaluation.