BUSINESS VALUE
Own your business. And what it’s worth.
Business is a life’s work, and owner net worth is usually wrapped up inside of it. So leaving your valuation to chance, hear-say, or buyer demands puts personal wealth and livelihood at risk. Helping you take control over the value of your business is the foundation of our services.
All owners will face moments of serious transition. Changes and shifts are the natural course of business – be they growth, expansion, exit or beyond. Of course, cashflow and profitability are paramount throughout. But few owners realize it’s the value of their company that provides the most critical barometer for their personal wealth and prosperity potential.
At Pendleton Street, our advisory approach offers vigilant oversight and diligent fine-tuning for each client’s present and future business valuations. Doing so lets us hit your financial targets and longterm needs, because the company you have built is also your greatest investment opportunity – if you manage it properly.
Essential Insights To Manage Your Business Valuation
Know your valuation variables, and retake contol over what your company is worth.
HOW WE CALCULATE WHAT YOUR BUSINESS IS WORTH
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Valuation is a tool, not a price tag.
What your business is worth is not a number dictated to you by an eighty-page valuation report. Value is far more nuanced and malleable. In fact, it’s a moving target which you yourself can intentionally control and optimize. Doing so puts you in the driver seat, and lets you self-determine what you’ll need the business to be worth right now, and well into the future.
The sum of many complex moving parts.
The pieces which impact the value of your business are called “value drivers”. Profitability, growth, operations, and risk all have key roles to play. By uncovering, analyzing, and optimizing these drivers to match unique characteristics of your company and industry, we’re able to steer you towards valuation targets which align both short term goals and long term needs.
• LIQUIDITY • DEBT/ASSET RATIOS • AMORTIZATION • SOLVENCY • EQUITY • CAPITALIZATION •
Value to whom, and for what purpose?
Business value can be slippery. It is a classic case of “the eye of the beholder.” Buyers courting you, an acquisition you’re eyeing, your successors, the bank, the government – each has different perspectives on the value of your company. Our unique skill is managing valuation variables and negotiating with outside third-parties to arrive at the numbers you need.
Deep financial expertise, business wealth strategy, and the experience to see your vision through.
Owning and operating a business is both difficult and rewarding. We get it. We’re right there too.
When confronted with tough decisions, growing pains, and complex unknowns, it’s easy to turn to peers, colleagues, and friends for counsel. But a cautionary word for your business valuation... beware the free advice of well-meaning buddies.
Since 2007, we have proudly served closely held mid-market businesses with the valuation-centric approach typical in multi-billion dollar corporations. We’d be glad to talk through your vision and objectives, and whether we are well positioned to help steward your business wealth plan.
BECOMING A CLIENT >
Business Valuation Objectives
The value of your business will serve crucial functions, depending on the transition stage you are facing.
TAKEOFF CLIENTS
• Identify models for longterm growth
• Quanity and manage tolerable risks
• Pursuing outside funding while protecting equity
ELEVATION CLIENTS
• Strategizing smart debt utilization and accelerated paydown
• Investigate and analyze merger and acquisition targets
• Assess profit distributions and portfolio diversification
LANDING CLIENTS
• Prepare for succession, buyout, or third-party sale
• Extract sale-of-business cash for retirement investing
• Planning an estate, taxes, and philanthropic giving