One of the most common questions we receive is, “What is my usiness worth?”.  Developing a clear answer to this question and establishing common expectations is an early step in most of our sell-side engagements.  Many issues will affect the value of a business being offered for sale.  These issues include, but are not limited to:

  • General economic conditions
  • Interest rates
  • Availability of capital to prospective buyers
  • Historical and projected financial performance of the business
  • Breadth and depth of the business’ management team
  • Business’ level of customer and/or industry concentration, the existence of contingent liabilities
  • Owner’s willingness to assist in the transition by entering into non-compete/consulting agreements

While many middle market companies are not brought to market with a stated asking price (prospective buyers are asked to submit bids), it is important to develop expectations of what the business will sell for, as this may affect the business owner’s ability to offer the business for sale and to evaluate other potential exit strategies, such as recapitalization or a partial sale.

Our preliminary valuation assessments are often performed as a complimentary service to business owners.  If you are interested in having one of our offices perform such an assessment, please contact us (link to contact us page) for a confidential, no obligation consultation.  In addition to the business owner’s time, we request that you make the following basic information available:

  • Most recent three years’ of historic financial statements
  • Most recent interim financial statements
  • Projected forecast or budgets
  • List of discretionary and/or non-reoccurring income statement items
  • Historic and projected capital expenditures
  • Written business or strategic plan, if available

Once again, all information provided to SBB Capital Partners is held in strict confidence.