“After 25 years of working with IT Services and Technology companies, I can tell you that a valuation analyst that does not specialize in valuing IT Services and Technology companies will almost always misrepresent the true value of the firm for failure to understand the industry attributes and idiosyncrasies that fundamentally drive value.”
Reed Warren, Founder & CEO, iT Valuations
Here’s an overview of what to expect during our 4-week valuation process.
Preparation & Readiness Week 1
Once you contact us, we’ll schedule a time to clarify your intended goals and what to expect during the valuation process.
Then, we’ll collect all the documents on the Due Diligence checklist that will inform the calculation of your company’s value. Here’s what we’ll cover this first week:
Review and sign the Confidentiality Agreements
Kickoff meeting with all parties to launch the process, discuss expectations, preview due diligence list, and address logistics and questions.
Upload all Due Diligence checklist documents to a secure virtual data room (VDR)
Assessments & Financial ReviewsWeek 2
Once we have all the items on the Due Diligence checklist, we’ll complete a comprehensive review of your financials and ask you to complete a value gap assessment.
Review financial and operational information
- Profit margins
- Revenue analysis
- Financial record keeping
- Cash flow
- Normalizations (add-backs)
- Owner’s salary & perks
Take Value Gap Assessment
- Financial Performance
- Growth Potential
- Switzerland Structure
- Valuation Teeter-Totter
- Recurring Revenue
- Monopoly Control
- Customer Satisfaction
- Hub & Spoke
Analysis & Calculation of ValuationWeek 3
After we review all your financial and operational materials and information, we’ll undergo a normalization process to determine the true economic benefit stream of the organization.
In addition, we’ll consider the impact of national, local and industry impacts on your company. We perform a comparative risk analysis to consider alternative investment vehicles that correlate to your company specific risk. Then, we’ll finalize our analysis and draft the following:
Market-Based Calculation of Value Report
Value Gap Analysis Report
Presentation & ReportsWeek 4
During this week, we’ll present a summary of our findings and deliver final reports.
During the presentation, we’ll cover the following:
True economic benefit stream
Specific company risk considerations
Cost of capital analysis
Present day value of historical and forecasted cash flows
Working capital consideration
Market based multiples
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.
Need to increase the value of your business?
Or are you ready to sell?
“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.”
CFO & COO, Telcion Communications Group