Business Valuation

The Business Valuation provides an external valuation of your business. It begins by converting existing financial accounting records from a tax perspective to a normalized or EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) perspective. This conversion will indicate the true cash flow of the business by adding back non-cash transactions and your discretionary spending.

To realistically value a business you need a good understanding of the marketplace, both economically and historically. There are several methods when valuing a business that include valuing various components of your business, including good will, tangible and non-tangible assets, property and management knowledge and commitment.

A Business Valuation is a valuable tool when selling ones company, but it is also an indispensable document in a variety of situations, including:

When dealing with the transfer of your business, it is imperative that you have a good understanding of what your business is worth – no matter the situation.

The Pavilion Valuation

The Pavilion valuation methodology entails the use of up to 20 valuation methods, including: Income approach, Market approach, Cost approach, Custom methods, Deal structure analysis, “What if” analysis, as well as numerous other valuation methods and financial tools. Business valuation is a complex task. If your valuation doesn’t consider all factors or if it uses inappropriate valuation methods significant problems will occur.

As each industry has a standardized valuating method, which include and exclude different components of a business, Pavilion will perform a valuation based on your industry’s standard methods. This will ensure the valuation of your business produces a value that comparable with other businesses in your industry.

To best understand the value of your business one should engage a Valuation Expert to provide a reliable document capable of proving your business’ net worth.