Services

You send us your financials, which we go through, and then we do a 2h video consultation, where you get a verbal valuation.

Zoom interview instead of on-site visit

Only for smaller businesses. The financial key numbers must be somewhat stable between the fiscal years. Your business also needs financials that are somewhat in order, with a balance sheet. Very limited normalization is included. The valuation is marked “only for internal purposes”.

Contact us to schedule your free 30 min video consultation.

On-site visit and interview are included in Texas, Florida, California and New York.

Most valuations fits into our standard category. Normalization is done to both the income statements and balance sheets.

Contact us to schedule your free 30 min video consultation.

On-site visit and interview are included in Texas, Florida, California and New York.

Potential litigation and companies with complicating factors of any kind.

Contact us to schedule your free 30 min video consultation.

Received an offer for your business, containing complicated terms? We help you navigate the jungle, which can include:

* Negotiation support regarding the valuation
* Seller liability post transaction
* Earn out
* Seller financing
* Payment terms
* Conditional deposit
* Unconditional deposit
* Non compete agreements
* Vendor due diligence and regular due diligence

Transaction advisory is included in the standard valuation and complicated valuation.

Exit planning is often communicated as something abstract, where a lot is promised, while it is difficult to grasp what it actually means. Some have exit-ready certifications and other things that promise a lot, but no buyer cares about this. What buyers care about can vary among different buyers, but there are 3 things that always get primary focus, in every transaction. These are (in no particular order):

Having order. This mainly refers to the bookkeeping, but also to some extent to contracts, and documentation of internal processes, and also to some limited extent, physical. This point mainly works in a negative sense, as in, you don’t always get more for the company if it’s in order, but it often leads to the buyer withdrawing if things are not in order.

Dependency on current owner. Buyers like to see that the company can operate independently of the current owner, even if he/she would be gone for a few months (or get run over by a bus, which is a less pleasant metaphor)

Profitability. The above-mentioned points often have an indirect impact on the exit valuation, but profitability has a direct impact. Companies are almost always valued at a multiple of earnings, so the result of the increased profitability is multiplied in the valuation.

We offer a 12-month program where we make the company exit ready. Each program is tailored to suit your needs, but usually consultations are conducted monthly or quarterly, either via zoom or on site. Below is a selection of what we do (in no particular order):

Cleaning up the books. Everything that “mixes” personally with the company, must be removed. Everything from expenses of a personal nature, to personal loans, to conference trips of a holiday nature and other things. In addition to that, the liability side of the balance sheet should only have liabilities, and the asset side should only have assets. All assets must also be normalized. The accounting must be clean and correct, buyers care about this.

Normalization. This means e.g. that you move surplus capital to holding companies, or take it out. Are there several companies such as holding companies etc. such, this must be controlled by moving all operations to the operating company.

Data room for contracts. This is good for keeping track of everything, but it’s especially good for avoiding dragging out the time, after a bid has been placed, until the deal closes. “Time kills all deals” is unfortunately a truth in business transactions, especially when it appears that you do not have a handle on the agreements before a buyer just before he is to acquire the company.

Reduce dependence on current owners, through delegation. This point is usually the hardest for owners to accept, especially for someone who has built a business from the ground up. However, the truth is that buyers like to see companies that are not too dependent on current owners. To some extent, it can be solved by locking the owner in the company even after the transaction, but this only means that the work is postponed to the future. If you want to get top dollar, for the company, you really have to be exit-ready.

Increase profitability in different ways. There are many different ways to increase profitability. Some within exit planning tend to advocate raising prices. It’s a pretty simple way, and it often works, but not always well. This can sometimes lead to short-term improvements, but you can also lose customers in the long term, and if customers start to leave the company just before the deal is to take place, it can be interpreted negatively by the buyer. However, getting rid of unprofitable customers can be a good idea. Reviewing the accounting treatment, you have can also be a good idea. There are many other ways besides those mentioned in this text. Careful consideration, of all conceivable methods to increase profitability, is what we advocate.