A key issue for entrepreneurs seeking to exit a business is determining the value of their years of hard work. Establishing a fair value for a company isn’t easy, but the sale price you come up with will be an important focal point of your transition and exit plan. To give you a true reflection of your company’s worth, your business needs to be valued accurately.
Knowing the realistic value of your business will give you the necessary confidence for any negotiations or potential transactions.
“Research shows that people attach a higher value to things they own compared to things that aren’t theirs.”
Pavilion’s accredited professional business valuation specialists execute an accurate, objective and independent assessment of value. Our advanced valuation methodologies and expertise ensure you avoid the risk of seriously undervaluing your largest asset at exit.
Can Cause Conflict
Determining the value of your company can cause conflict between you and your successors, potential buyers, financial partners or tax assessor.
A professional business valuation from a third-party will hold more credibility with potential buyers than numbers generated in-house.
Due to the complex nature and high stakes of selling your company, a professional valuator can help you set a selling price and determine whether a buyer’s offer is reasonable.
The valuation process will also help you identify weaknesses in your organization and find ways to maximize its value.
Earnings Are Key To A Valuation
The most common method used to determine a fair sale price for a business is calculating a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization), which is a measure of a company’s ability to generate operating earnings.
The multiples vary by industry and could be in the range of 3x to 10x EBITDA for a small to medium sized business, depending on market conditions.
Ideally the business should show strong, profitable cash flow to reduce the risk for buyers.
Pavilion’s comprehensive, professional business valuation process enables us to offer a true indicator of a company’s success, giving you the best value in the marketplace today.
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PROFESSIONAL BUSINESS VALUATIONS: Contains critical information about the different approaches to the valuation process and what your business is worth.
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A Business Value Gap Analysis Gives You Clear Direction For Your Future
Dear Stephen: On behalf of Norm and I, just a short note of thanks to you and the team at Pavilion for your work assisting BC Comfort senior management via our...President, BC Comfort Business Value Gap Analysis Read More
Dear Stephen: On behalf of Norm and I, just a short note of thanks to you and the team at Pavilion for your work assisting BC Comfort senior management via our unique "value gap analysis". The findings of which helped strengthen several core processes during an important period of transition in our industry. We have a better business because of your efforts.President, BC Comfort Business Value Gap Analysis Close
When Pavilion presented me the valuation and showed how they had used over 20 different valuation methods I was confident that we have the most accurate and unbiased...Business Valuations Read More
When Pavilion presented me the valuation and showed how they had used over 20 different valuation methods I was confident that we have the most accurate and unbiased valuation possible that is a fair representation of business value. We have been working with them for over 15 valuations – we now use Pavilion – they really know their stuff!Business Valuations Close
The Pavilion team exceeded my expectations. They provided me with a Valuation that surprised me, revealing a lot of extra value that I hadn’t considered...Valley Personnel Ltd. Share Sales to Strategic Buyer Read More
The Pavilion team exceeded my expectations. They provided me with a Valuation that surprised me, revealing a lot of extra value that I hadn’t considered. I was expecting disruption but they managed the sales smoothly from start to finish. They handled the entire sale process with complete secrecy and my staff was not alerted or alarmed. I was expecting a lower sale $ $ value and the successful buyer paid more than I expected. They negotiated a higher cash component and great transition terms for me.Valley Personnel Ltd. Share Sales to Strategic Buyer Close