In today’s competitive business landscape, understanding your company’s true value is essential whether you’re planning to sell, seeking investment, or making strategic decisions. At Equitas M&A, we’ve developed a comprehensive approach to business valuation that goes beyond simple number-crunching. Our Market Value Assessment (MVA™) process provides business owners with clarity and actionable insights to maximize their company’s worth. Unlike large, impersonal brokerages, we’re a boutique firm where every team member brings years of experience as former business owners before transitioning to business brokerage. Led by Ron Hunter, CPA and Certified Business Appraiser, along with our team of Certified Business Intermediaries (CBI), we offer personalized attention that high-volume practices simply cannot match.

What Is Business Valuation and Why Does It Matter?

Business valuation is the process of determining the economic value of a business or company. However, a proper valuation isn’t just about arriving at a number. It’s about understanding what drives that value and how to enhance it.

For North American business owners, a professional business valuation serves multiple purposes:

  • Preparing for a business sale
  • Planning for succession or exit
  • Securing financing or investment
  • Resolving partnership disputes
  • Making informed strategic decisions
  • Estate and tax planning

The Comprehensive Approach to Business Valuation

At Equitas, our MVA™ process examines eleven different aspects of your business to provide a complete picture of its value. Unlike traditional valuations that focus solely on historical performance, our approach is forward-looking and action-oriented.

Executive Summary: Your Business Valuation at a Glance

The business valuation process begins with a comprehensive executive summary that outlines your company’s current value, risk profile, and industry multiples. This section also provides specific recommendations for improving both saleability and sale price.

We assess transferability, identify the most likely buyer types, and provide expert commentary on your business’s strengths and weaknesses from a valuation perspective.

Normalized Earnings: Revealing True Earning Potential

A critical component of any business valuation is normalizing financial statements. Our analysts adjust your reported financials to identify the true earning potential of your firm. This normalization process creates adjusted financials that reveal what buyers actually care about – sustainable, transferable earnings.

Risk Assessment: The Key to Maximizing Business Valuation

The primary reason companies fail to sell is that returns don’t offset associated risks. Our business valuation process includes a detailed risk assessment, focusing particularly on growth potential.

We quantify your business’s growth prospects because all investors purchase business assets to grow them. When a business is well-positioned to scale, investors are willing to pay a premium, knowing future returns can be increased with operational experience and new capital.

Multiple Methodologies for Accurate Business Valuation

Our approach compares eleven different valuation methodologies to determine your company’s market value. This comprehensive approach ensures a more accurate and defensible valuation than relying on a single method.

Understanding Your Sale Zone

A business will sell for a negotiated value between the maximum a buyer is willing to pay and the minimum a seller is willing to accept. Our business valuation identifies this “Sale Zone” – the range of acceptable market values for your company.

Buyer Insights: Not All Buyers Are Created Equal

Different buyer types value businesses differently. Our business valuation process outlines twelve different types of buyers, the pros and cons of each, how much they’re likely to pay, and how they typically structure purchases.

For example, strategic buyers (competitors, suppliers, or strategic PE firms) typically offer:

  • Higher valuations
  • Faster exits
  • Smoother due diligence
  • Better opportunities for employees

However, they may also present concerns about legacy preservation and cultural changes.

From Valuation to Value Enhancement

Our business valuation doesn’t just tell you what your business is worth – it shows you how to increase that worth. We provide clear steps to reduce risk and enhance value in various areas:

  • Deal terms flexibility
  • Decision-maker alignment
  • Training and transition planning
  • Break-even analysis and safety margins

The Bottom Line: Cash at Closing

Perhaps most importantly, our business valuation calculates how much cash you’ll actually receive at closing. This calculation factors in working capital, retained cash and A/R, debt repayment, closing costs, and payment terms to give you a realistic expectation of proceeds.

Start Your Business Valuation Journey Today

Understanding your business’s true value is the first step toward maximizing it. Whether you’re planning to sell now or years in the future, a professional business valuation from Equitas M&A provides the clarity and direction you need to make informed decisions.

Our comprehensive MVA™ process has helped countless business owners across North America unlock additional value and achieve their goals. Contact us today to discover what your business is truly worth – and how to make it worth even more.