Business Valuations
EBITDA is the truest component to measure in valuing a business.
As part of our Seller Services, we help determine Earnings Before Interest, Taxes, Depreciation, and Amortization (or EBITDA) for your business. Increased EBITDA is the ultimate company valuation measuring stick. It is an irrefutable indicator of growth that companies may rely on to improve the organization, reward employees, or invest in new markets.
The process of valuing a business is unique, requiring the equal parts application of both “science” and “art”.
“Science”
We review the performance metrics of a company in recent years as reflected in the tax returns, the most reliable form of financial reporting.
“Art”
We develop an understanding of the ownership and operational model of the subject business to “normalize” the earnings.
Businesses should understand the true value of their company by completing a professional valuation every 3-5 years.
This supports strategic planning around important issues such as:
Partnership “Buy-Sell” Agreements funded with life insurance. This allows for a smoother transition of a business if one of the partners dies, while paying their survivors, and avoiding the economic pressure of incurring debt for this purpose.
Supporting a company’s need for lender funding to grow the business.
Allowing a company to react quickly to any merger/acquisition opportunities.
We have been assigned to the role of “Receiver” by the Vermont courts on several occasions. As the Receiver, we are responsible for protecting the value of an asset during an ownership dispute in litigation while the courts process the claims. This requires us, in most cases, to operate the business during this period while submitting intricate financial reporting to all parties.
We are a trusted source of business valuations for:
Court Systems
Lenders
Attorneys
Accountants
Business Owners