What is your company’s fair financial value?
A business is only worth what someone will pay for it, and therefore the market will ultimately be the most accurate reflection of the value of your company.
Through our Estimate of Value process, you receive a score. Your score is then used to measure soft risks and therefore where you will likely land on the range of value typically found among similar businesses in your industry.
While we always show an estimate of value, the reality is that multiples pivot around higher-scoring businesses. These types of businesses command strategic prices that go significantly higher than financial buyer prices, while lower scores may indicate that the business is not sellable beyond its liquidation value.
How is your IT services firm valued?
A business is only worth what someone will pay for it, and therefore the market will ultimately be the most accurate reflection of the value of your company.
The estimate of value in your report is based on information from your questionnaire. There are eight attributes that drive your value.
Financial Performance
Growth Potential
Switzerland Structure
Valuation Teeter Totter
Hierarchy of Recurring Revenue
Monopoly Control
Customer Satisfaction
Hub & Spoke
The higher your organization’s maturity in the eight elements that drive value, which we assess in our Estimate of Value, the less risk for your acquirer, leading to a higher valuation for your company.
By contrast, a strategic buyer develops an offer by estimating the value of your company in the hands of the buyer. The math a strategic acquirer does starts with imaginings of what would happen if your company were grafted onto its platform. Companies make strategic acquisitions for many reasons, but these are the three most important ones:
Discounted Cash Flow Method (DCF)
Capitalization of Earnings
Market Transactions
Buyers will typically value not only next year’s profit, but all expected profits in the foreseeable future. For every year into the future that buyers must wait to get their profits, they will determine what the present-day value is of those future profits.
I know this may sound confusing, but we want your IT services firm to get an estimate that leverages the math behind your multiple.
By the time we’re done, you’ll know the fair market value of your company so you can determine what your next steps are.
Are you ready to sell?
Want to increase the value of your business?
Get your Value builder report by completing the form below.
Here’s what one of your peers has to say about their estimate of value.
“Working with Reed and Heidi was a comfortable and easy process. There is a lot of information that needs to be gathered to do an accurate assessment of a technology business and they made it manageable and painless. The report we received about our business at the end of the process was priceless. Everything was broken down, easy to read and easy to understand.”
Michelle Padilla
CFO & COO, Telcion Communications Group