What is your Company Worth?

Buyers have deep pockets and are motivated. Now value the business. There will always be the buyers price, your price and the fair price.

Knowing the fair value provides gut-level comfort and a huge advantage in this chaotic world. Some say a company is worth exactly what another company is willing to pay…or is it?

  • How about the value of the assets? Or earnings and income?
  • Is it the potential of the business? Or goodwill?
  • Is it all or some of it?
  • How do you arrive at that magic number fairly?
  • More importantly, who can provide that assessment?
  • An accountant? A lawyer? Your neighbour who sold his business?
  • How can you be certain?

What will your Company Sell for?

The business valuation process is actually quite challenging for a variety of reasons. For example, Type of Company, Growth Rate, Predictability and Market Conditions among a few of the key issues involved that have an impact on the business enterprise value.

Market Conditions

Valuation depends on market conditions. Significant changes in valuation can occur because certain types of companies are in greater demand or because some business sectors are more attractive to acquiring companies.

Valuation Principles

In financial terms, the value of any business is the present value of future income stream the company will generate.

Predictability

Predictability is a difficult factor to quantify. Every company has processes, whether they are clearly defined or implied. Employing measurable, repeatable business processes is what enables companies to insert predictability into their organization.

There are numerous reasons for the need to implement predictability in a business, including mergers or acquisitions, inefficiencies, cost control, or lack of process effectiveness.

Customer Concentration

Most valuations assume a diverse customer base. However, when one customer starts to account for more than 10% sales revenue; the valuation will be negatively affected.

Note: Some valuations can show an extremely wide range of values and are not accurate enough to be used in conjunction with the sale of a business transaction.

21st Century M&A Solutions

Traditional approaches to M&A in the small to mid-cap private company marketplace, operate with highly fragmented and inefficient processes. These outdated approaches frequently fail to serve the needs of business owners, shareholders and investors.

Effective strategies that work from the ground up.

Pavilion utilizes a world-class process that delivers significant value that meets the client’s needs. These innovative strategies generate real improvements for achieving business value.

How does Pavilion deliver maximum value?

Pavilion utilizes a world-class process that delivers significant value that meets the client’s needs. These innovative strategies generate real improvements for achieving business value. The Pavilion team works closely with you to assess the business “value drivers” that ultimately determine the Enterprise Value in the marketplace. These solutions and services range from:

  1. Risk Assessments
  2. Business Health Checks
  3. Transaction Comparisons
  4. Financial and Valuation Reports

Pavilion strategies help clients source and execute deals effectively, with higher selling prices and on more favourable terms, while minimizing risk and business disruption.

Pavilion Valuation Services 
Serving Canadians Coast to Coast
Phone: 1-800-758-2922
Email: 
valuations@pavilionservices.com

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