Company valuations become necessary every now and then when your customers want to sell their company, buy out a shareholder, seek additional funding from an investor, or better understand their asset performance. Regular valuations can even help identify the best time to sell a company. Choosing the correct valuation method, however, is complex, with various approaches like book value, liquidation value, market capitalization, multiplier methods, and discounted cash flow (DCF). Each has its own applications and limitations, requiring expertise to apply accurately.

Some fiduciaries might resort to overly simplified rule-of-thumb methods such as valuing a business at 1 times its income or 5 times its EBIT, without considering the company size, the sector of the company nor any other element impacting the value of a company. While these methods can provide a quick estimate, they are not necessarily accurate and can lead to significant risks. These generalized approaches fail to account for unique company characteristics, market conditions, or future growth potential, potentially resulting in undervaluation or overvaluation and leading to missed opportunities and financial losses. Additionally, apart from these risks to clients, fiduciaries face the constant threat of legal action for neglecting their professional obligations by delivering that kind of simplified valuation.

Collaborating with me ensures your clients receive accurate valuations, helping you retain and attract more business. I would be glad to assist you with occasional company valuations, allowing you to focus on your core services. Partnering with me expands your service offerings and strengthens client relationships, ensuring long-term satisfaction and loyalty.

Want to learn more about how a collaboration with me can look? Then please get in touch, and I'll gladly discuss the modalities of a potential cooperation with you.