An EOV is part science – part art. We have more than 15 years’ experience in mergers and acquisitions and time-tested EOV procedures.
We will provide you with accurate, timely, realistic information so you can make well-informed business decisions – for whatever kind of choice you’re trying to make.
What is your company really worth?
Most business owner’s do not have an accurate picture of the value of their company if they were to take it to market today.
What is an EOV?
An estimate of value gives you a comprehensive picture of value and worth allowing you to plan on selling or building value strategically.
Who needs an EOV?
- Business owners considering their exit strategy options
- Buying a business
- Estate planning / buy-sell agreements
- Internal transition to the next generation / current management
- Strategic planning
- Helping you estimate the value of your business
Our Valuation Process
- Client Engagement-together we gather your company’s historical and potential growth. We also analyze historical cash-flow and future potential.
- Financial Analysis-Utilizing the last 3-5 years of financials, including your TTM (trailing twelve months) and adjust for any 1-time costs, personal expenses, along with normalizing salaries and rents to get to a true, normalized EBITDA to compare with other companies in your industry that have actually sold in the recent past. This gives you a realistic view of what value your company would be worth if you sold.
- Benchmarking-The benchmarks allow you to see how your company stands against your industry peers right now. Giving you the knowledge you need to sell or revise your strategic plan.
- Quality Review-By researching the value drivers in your industry, we can see how your company ranks in comparison. These drivers include but are not exclusive to the management team, customer concentration, margins, sales growth, and the business process.
- EOV Presentation-By walking through the Estimate of Value, your questions get answered and you can start to see the next step in the process. Some of the questions we ask are:
- How do you feel about the value?
- Is it higher, lower, or on par with your expectations?
- Are you looking to exit their business soon, or in a year, or in the coming years?
- How does the EOV fit into that plan?
This will not only allow you to get a realistic picture of your company’s current fair market value, but we will show you how we came up with that value. If it does not match your expectations, we’ll show you how you can work on a couple of key areas to make your business more valuable or salable.
Personal ways to add value to your business-When it comes to business value, it doesn’t always come down to the company, but the value you bring to your business.
By Scott Bushkie
Scott Bushkie is Managing Partner and Founder of DealCoach.
With more than 20 years in the M&A industry, Scott is a recognized leader in the field, providing exit strategies, business valuations, and M&A advisory services to business owners in the lower middle market. He has successfully executed sales to domestic and international buyers, private equity firms, family offices, and strategic buyers. Follow DealCoach on Linkedin