Company and Business Valuations
Determining the business value of any enterprise is a complex and time-consuming process. Nevertheless, it is frequently used in setting the price for an enterprise. Financial institutions often use professional valuations to determine the amount of credit that could be extended to a company, by courts in deciding litigation settlement amounts, and by investors when evaluating the performance of the company’s management. Valuation is also required to meet a variety of accounting and tax regulations.
We specialize in evaluating closely-held companies, professional practices, and partnership interests. We perform business valuations on a confidential basis for business owners and their professional advisers for purposes such as estate planning, transaction support and lawsuits. Our clients come from industry and professional practices. Also, we provide appraisal services for business assets, such as offering valuations of machinery, equipment, inventory assets and real estate.
Debt Valuation and Analysis
In the equity valuation model, the firm's equity value is calculated by subtracting the value of the firm's debt from the enterprise value. Debt valuation then becomes an essential component of assessing the firm's equity. A company's debt is valued by calculating the payoffs that debt holders can expect to receive, considering the risk of default. We address the counterparty's credit risk by considering the probability of default and the amount that debt investors could recover in such an event.
Real Estate Investment Analysis
We have considerable experience in property development gained by our participation in different real estate projects, which makes us capable of conducting comprehensive development appraisals and feasibility studies for new or ongoing investments. However, due to the unpredictable variables that influence the final investment rate of return, deterministic models are not suitable for making an investment decision. Instead, we use a set of Monte Carlo methods to model the probability of different outcomes in the development process.
Continual Financial Services
As a small or medium-sized organization that has become too complex to be managed by one manager or owner but does not need to hire a full-time CFO, you can benefit from our continual financial services. These include:
• Annual budget development
• Profitability models for products and services
• Cash-flow planning
• Decision making on new capital projects; NPV, IRR, Monte Carlo Analysis
• Valuation of real options
• Capital budgeting and decision making
• Capital structure optimization and financial leverage
• Calculation of weighted average cost of capital (WACC)
• Representing the client's interests in negotiations with their financial institution
• Acting as an independent director to mitigate conflicts of interests