Cornerstone’s Estimate of Value (EOV) provides owners with a realistic understanding of what the market would most likely bear for their company in today’s marketplace.
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.
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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
- If you are buying a business
- If you’re considering estate planning / buy-sell agreements
- If you’re going through an internal transition to the next generation / current management
- Business owners looking for benchmarking
- Business owners focused on strategic planning
Helping you estimate the value of your business
- Get an annual Estimate of Value (EOV)
- Avoid seller’s remorse
- Agree on “What-if”
- Accurate accounting doubled the business value
- Your one big liquid asset
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 sold in the recent past. This gives you a realistic view of what value your company would be worth if you sold.
- How to approach the valuation of your company
- Customer concentration and its effect on business value
- New middle market-How M&A Advisors add value
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.
- M&A market overrides cash flow value calculation
- Reverse due-diligence
- Succeed where others failed: Case Study
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.
- Extraordinary multiples- Fact or fiction?
- Messy accounting means your sale is numbered
- Reduce working capital to maximize the value
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 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 critical areas to make your business more valuable or salable.
- Build your company’s value
- 5 easy strategies boosting the value of technology prior to sale
- Business valuation-Add value beyond revenues
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.
- For value, seek boundaries, not burnout
- Take a vacation to grow your value
- Succession planning-Cleaning adds value for sale in the future
- Love your business again
- M&A Advisors-It’s time to have “The Conversation.”