Our valuations provide executives and business owners with a solid foundation for making long-term corporate decisions.
- Market valuations to establish a baseline
- “What if” scenario analysis
- M&A scenario analysis
- Annual valuation for measuring value creation
- Valuation consulting
What is it
There are a variety of situations in which executives and business owners need to understand the value of their business without actually conducting an investment banking marketing process.
Business owners need an objective resource to help them develop long-term plans based on a solid understanding of the value of their businesses.
Why it matters
“When all you have is a hammer, everything looks like a nail.” – Abraham Maslow (paraphrased)
Advisors tend to be very effective in their area of expertise, but can be limited outside of it. Because of this, when dealing with questions of long-term value, it is critically important to turn to someone who deals with this topic every day.
How we do this well
Our area of expertise is focused on measuring value and understanding what creates value. Sharing this knowledge and insight with other people is at the core of what we do.
Clients use us as a sounding board and resource to help them understand the value implications of different scenarios that they are considering. For these kinds of projects, the valuation becomes a foundation for the client’s planning process.
Examples of Corporate Planning Engagements
We completed a valuation for a client with a complex capital structure that the board used for an equity redemption. Next, management asked us to run the analysis with new assumptions to determine the resulting stock value under two different redemption scenarios. They used our analysis to go forward with a redemption and subsequent equity offering that deleveraged the company and provided liquidity to shareholders.
Another client asked us to complete a valuation to serve as the basis for educating the next generation of family owners on the value of their business. In particular, they were interested in the factors that influence and build value. After completing the report, we then spent a day with the family and their estate planning advisors at the company’s headquarters teaching the next generation about their business through the lens of an outside investor.
A client with a service business had developed a promising new product and launched a distribution business to commercialize it. Recognizing the difficulty of managing a product business inside a service firm, management hired us to help them understand the value of each business on a stand-alone basis. They used our work to help them develop a long-term plan for separating the two businesses.
We worked with a highly-leveraged family-owned manufacturing company to help them measure the recovery of the equity value of their business in the wake of the 2008 recession. The owner used the annual valuation to help them identify the right timeline to exit the business. When the owner decided to sell the business, we helped the client find the right investment banker to help them take the company to market.
For the same reasons clients rely on us for an objective valuation, they turn to us for an unbiased view of their business and perspective on long-term value creation.