Risk come from not knowing what you are doing
Valuation can be controversial and subjective so an independent and robust opinion which will stand up to scrutiny is necessary. With current changing in the global business environment in recent years have necessitated the use of professional valuation expertise.
Valuation can make or break a business deal because most of the time it is valued at subjective inputs rather than solid data based on marketplace realities.
One of the reasons business valuation is such a complicated issue is because there are many acceptable valuation methods. And the bottom line is “the value of the business is the amount someone is willing to pay for it in the marketplace”.
OUR BUSINESS VALUATION SERVICE
Business valuations are frequently used for a multitude of purposes. An independent valuation is an important planning tool for business owners to use as a benchmark for transition and exit strategy purposes. Companies that have stock option incentive plans in place require preferred or common stock valuations as well as option valuations to determine the per share value. Companies exploring or that already have an ESOP in place also require a business valuation for the transaction or annually for administrative purposes. These are but a few of the reasons that a company or individual might need a valuation.
At Quantum, we have a dedicated team of professionals specializing in valuation services ready to serve you. Our valuation practice is built upon the expertise and experience of our people, the quality and thoroughness of our analyses, the breadth and depth of our resources, and our ability to effectively explain (and defend, when necessary) our valuation analyses and related conclusions.
We perform independent, persuasive and extensive financial analyses of a business and deliver comprehensive reports that document the current condition of a business being valued as of the date of the valuation.
our valuation services utilizes an innovative approach
Value of a closely-held business is not easily determined as there are numerous factors that can impact a business’ value.
Each business is unique and no public market exists for the shares of the business. Valuation is not an exact science whereby a given formula can be applied to a set of data and conclusive results determined.
The informed judgment of the professional must be inherent in the valuation process. A systematic, professionally prepared business valuation report can provide objective guidance in answering these critical questions.
There are various reasons you might need business valuation services:
- Income tax, such as corporate reorganizations or estate planning
- Shareholder or family ownership disputes
- Marital dissolution
- Going public or going private transactions
- Goodwill impairment
- Allocation of purchase price
- Business sales and acquisitions
- Expropriations
- Fairness opinions for related party transactions
- Employee share ownership plans
- Strategic planning
Our detailed process
- Performing a comprehensive review of your business or the transaction being valued. This may include interviewing management and working with other professionals that are a part of your team;
- Reviewing and analyzing your financial data and projections;
- Comparing your business/transactions to other similar businesses/transactions, in order to benchmark your unique circumstances/facts or a specific situation;
- Evaluating the current national and local economic and industry environment to determine the impact;
- Deploying a range of valuation methods to your situation and determine the most appropriate method that best reflects the value;
- Applying applicable discounts or premiums to the value, due to such factors as a lack of control or reduced marketability; and
- Providing a professionally written comprehensive report.
DIFFERENCE BETWEEN VALUE AND PRICE
The price of an object or service is what you spend to purchase the product or service. Value is the utility of the good or service to the consumer. In other words, value is a person’s opinion about the amount of worth the product or service has to you. Price is a determined exact number.
Value, however, is dependent on the judgment call of buyer and seller based on various economic factors. Due to the fact that different judgment can be reached by different people and based on different assessment of economic factors, the assessed value is not an exact number, but a relatively wide range. The decision maker need scientific, objective and reliable reference. Traditional business valuation service cannot be capable of the highly volatile today’s market. Our service, however, to the most extent can support enterprise analyze the implications of different factors, reaching a scientific and reliable value range..
What differentiate us?
We provide valuations that offer more than just financial reporting—they’ll help you see issues, trends or opportunities to make better decisions that accelerate your business.
While the fair value, mark-to-market debate rages on, businesses must comply with complex standards for financial statement reporting that require assistance from professionals with valuation experience and comprehensive knowledge of fair value accounting standards.
Under the increasing scrutiny of independent auditors, businesses need meaningful and reliable financial information in compliance with fair value standards.