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Would you like to know what your business is worth?
Would you like to maximize your profit when it’s time to sell?
Of course you would! But it’s amazing how many business owners know the value of their house, their car and their bank account within pennies, but have no idea how their most sophisticated and valuable asset—their business—is even valued, let alone what it’s actually worth or how to maximize that value! A time comes when every owner makes the decision to exit his or her business, and it’s never too early to begin planning your exit strategy.
ProForma West povides business valuation and exit planning services to small and mid-sized companies in every industry. Our Business Valuation Experts have the credentials, experience, and tools to quickly evaluate and establish the value of your business, regardless of industry or location.
Maximize the Value of Your Business
Both our comprehensive exit planning program, called ProActive Services, and our stand-alone business valuation products were developed because our clients of all sizes are increasingly sophisticated about how to achieve their business valuation objectives. As a result, they are planning ahead for a successful exit from their companies.
Sophisticated business owners want to know what their business is worth today and how that value is derived so they can position their companies for maximum value when the time comes to sell—even if that’s five years into the future. They understand it’s never too early to begin planning their exit strategy. A successful sale starts with good planning and both our ProActive Services offering and our valuation services focus on helping you understand what your business is worth and why, how to position yourself now for your future exit, and how we work together to intelligently price your business in the marketplace.
Exit Strategy & Planning
ProActive Services is a comprehensive, integrated program designed to help you understand the factors that drive the value of your company and how to achieve your value goals by the time you want to sell your business. We will take you through three stages to help you properly prepare and position your company for a future sale.
ProActive Services Process
First Stage: Understanding the Value of Your Company
The first steps will be to perform a current and projected market Value Assessment on your company:
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| Step 1 |
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Perform a current Market Value Assessment
What’s your business worth today, and how is that value derived?
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| Step 2 |
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Develop a ProForma Plan for projected growth
Based on your plans for growth and your goals for value, your Pro-Forma Plan projects out the financial performance required for your business to achieve a certain projected value, including an estimate of the time required to get there.
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Develop a projected Market Value Assessment
"If you don’t know where you’re going, you’ll never get there."
A projected Assessment is performed reflecting your timeframe for sale and your growth expectations; or based on the rate of growth required to achieve a specific value in a desired amount of time.
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Second Stage: Preparing Your Company For Sale
There are critical aspects to preparing your company for sale that, if possible, should precede any effort to sell. The next steps we take you through will involve an assessment of how attractive your business would be to a prospective buyer— these are factors that are critical now to building value into your company long term.
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Financial Information Review
Our detailed financial analysis not only forms the basis for your Market Value Assessments. It will also put your financial reporting processes in perspective and detail certain actions you should take to ensure that your company’s financial presentation is in a condition that will help maximize its value and make it easier to sell. This is one of the single greatest weaknesses that cost a business owner the ability to sell his or her company, let alone maximize its value.
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Develop a ProForma Plan for projected growth
We will provide you with an assessment and recommendations report on the physical presentation of your business and how future buyers will perceive it and how that affects its value and salability.
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Third Stage: Getting There
"If you don’t know where you are, you’re lost."
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Annual updates to your Market Value Assessments
We will perform annual updates to your current Market Value Assessment to help you assess your progress towards your stated value goals.
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Our ProActive Services offering is a comprehensive approach to understanding how your business is valued, and how to position it for maximum profit when the time comes to sell.
Whether you ultimately transfer your business to family members, employees, or on the open market, you owe it to yourself to know what it’s worth today and what you need to do to maximize its value. ProActive Services will help you do just that.
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Business Valuations
As business owner, you know what your house is worth, how much is in your checking and savings accounts and in your IRA, but do you know what your most important and complex asset is worth and how it is valued? It’s surprising how many business owners haven’t considered the importance of understanding the value of their business. This is critical for business planning purposes, but may also be important for estate and retirement planning as well. Every business owner who is serious about understanding how to maximize the value of their business should have periodic business valuations performed.
As a buyer, you are considering a significant investment in a business. An independent, objective assessment of value is a critical link in your acquisition analysis.
ProForma West provides business valuation services to buyers and sellers of small and mid-market companies in every industry. Our Business Valuation Experts have the credentials, experience, and tools to quickly evaluate and establish the value of your business, regardless of industry or location.
We offer four different business valuation service levels, scaled to meet your specific needs. Comments on company size and pricing are for general guidance only. Speak with your intermediary to determine which valuation is most appropriate for your specifc business and needs.
Valuation Services:
MIDDLE-MARKET BUSINESS VALUATION: This is a stock based assessment required for larger companies, typically with annual sales in excess of $20,000,000 and up to $100,000,000 or more. Same processes apply as with a Comprehensive Valuation, but more thorough industry, demographic, and financial analysis is required. It is appropriate for pending litigation, IRS audits, partnership disputes, gift/estate planning, and for sellers, buyers, or lenders of middle-market companies that are planning for the sale of a business. Utilizes 11-12 valuation methodologies, industry analysis, demographic studies, plus a nationwide comparison of businesses sold in same industry. Can be provided with or without Minority Shareholder Discount. (90-110 pages) Requires 2-6 weeks to complete. Price varies based on the complexity of the project.
COMPREHENSIVE BUSINESS VALUATION: Stock based. With or without Minority Shareholder Discount. Required for pending litigation, IRS audits, partnership disputes, gift/estate planning, and for sellers, buyers, or lenders that are planning for the sale of a business that desire more thorough analysis and supporting documentation than the Full Scope Valuation will provide. Utilizes 11-12 valuation methodologies, industry analysis, demographic studies, plus a nationwide comparison of businesses sold in same industry. (90-100 pages) Requires 2-4 weeks to complete. The Comprehensive Valuation product is appropriate for most businesses to at least $20 million in annual sales, and possibly to $50 million. Price varies based on the complexity of the project, but for companies under $10 million in annual revenue, a Comprehensive Business Valuation will typically run $3,995.00 - $4,495.00.
FULL SCOPE BUSINESS VALUATION: Asset based or Stock based. Often used for internal purposes such as planning for sale, conducting annual reviews, or for obtaining lender financing. Same company appraisal methodologies used for the comprehensive valuation but with less explanation of the analysis and less supporting documentation. Utilizes 11-12 valuation methodologies, industry analysis, demographic studies, plus a nationwide comparison of businesses sold in same industry. (50-60 pages) Requires 2-3 weeks to complete. The Full Scope product is appropriate for most businesses up to about $20 million in annual sales. Price varies based on the complexity of the project, but for companies under $10 million in annual revenue, a Full Scope Business Valuation will typically run $2,995.00 - $3,495.00.
LIMITED SCOPE BUSINESS VALUATION: Often used when our client needs to know the current market value of the business but does not require all of the supporting documentation. Utilizes 9-10 valuation methodologies plus a nationwide comparison of businesses sold in same industry. (25-35 pages) Requires 1-2 weeks to complete. The limited scope product may not be appropriate for businesses in excess of $5 million in annual revenue. Cost varies based on the complexity of the project, but for companies under $5 million in annual revenue a Limited Scope Business Valuation will typically run $1,495.00 - $2,495.00.
All valuations undergo an internal review process. Regardless of prices quoted, all fees are based on the nature and complexity of the business.
Contact a ProForma West intermediary for more information.
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