Aucune remarque pour cette diapositive
First – lets talk about the different kinds of value – can anyone think of a few?
Liquidation ValueThe estimated amount of money that an asset or company could quickly be sold for, such as if it were to go out of business.Usually pennies on the dollar – Goodwill Value represents the value of a company over and above its liquidation value.
Replacement ValueThe amount that an entity would have to pay, at the present time, to replace the assets of the business.insurance value
Investment ValueThe estimated value of an investment to a particular individual or institutional investor. It may be greater or less than Market Value depending on the investor's particular situation.Usually, relative to synergiesReturn on Investment – risk verses reward - liquidity
Fair Market ValueThe amount at which a business or property would change hands between a willing buyer and a willing seller when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts. – this is a fairy tale much like the unicorn – in the real world there all always pressures and constraints on one party or another
Going-Concern ValueThe value of a company as an ongoing entity. Unlike liquidation value, the ability of the company to continue to earn profit is considered.Most Probable Selling Price This value is comprised of the value of its tangible assets plus intangible assets (goodwill)Now that we have discussed types of value let’s talk about value itself.
Value is measured differently by each buyer or owner40% of the business sales that fail fail due to a difference in price and value between the buyer and the sellerStructure of the deal can affects valueWhat is my business worth – everyone’s favorite questionThe obvious answer is that it is only worth what someone is willing to pay for itIt will also be worth different amounts to different individuals or companiesTherefore – in order to set a price you need to calculate the estimated value for your most likely buyer
Factors that differentiate an 6x+ multiple business from a 3x (an “A” business from a “C” business)These are characteristics that either reduce the risk associated with owning the business or enhance the prospects that the business will grow significantly in the future. Every business would want these Value Drivers to be in place as you exit the business to ensure that the business can continue and that you will receive the income stream you need to reach your financial objectives.ASK: Who can name a few? Recent profit history General condition/characteristics of Co. Market demand for particular type of biz Economic conditions Ability to transfer goodwill / other intangible values to a new owner