Corporate Finance
Business Valuations
Mergers & Acqusitions

Valuation For Business Sale or Acquisition

Windeye Partners frequently works with business owners in order to assist them with setting an appropriate valuation when considering or preparing for the sale of a majority equity interest or a business division to private equity and strategic buyers. We also assist companies, family offices and investment funds with analyzing the valuation of a business that they are considering for an acquisition. For these situations it can be important consider potential synergies between the acquiror and the target business, using Investment Value rather than Fair Market Value as the valuation standard.

In order to develop a valuation analysis we require a thorough understanding of the business, competition, financial history for 2-5 years, and financial projections for a period of 3-5 years. The valuation process will normally involve a Discounted Cash Flow analysis and a search for multiples from acquisitions of comparable private companies in specialized databases. The valuation multiples of publicly traded companies will generally be less relevant due to size differences but can also be considerd.

Our valuation reports for business sale or acquisition purposes are prepared in a more streamlined and affordable format compared with the detailed reports required for tax related or financial reporting purposes, and the turnaround time can be relatively short. Such valuation reports will typically contain the following sections:

• Valuation Summary
• Industry Overview
• Cost of Capital (WACC) Calculation
• Discounted Cash Flow Analysis
• Comparable Public Company Multiples
• Comparable Transactions Multiples
• Scenario Analysis & Value Calculation
• Information Sources
• Valuator Qualifications

These reports are prepared as a Calculated Value in accordance with standards set by NACVA and are therefore not appropriate to use for any tax related matters or financial reporting purposes.

To discuss our valuation services please email us at windeye@windeyepartners.com or contact Michael Guthammar on telephone (929) 223-2935.