Indication of Market Pricing Assessments
Many business owners would like to have an answer to the question: What is my business worth? Global Equity Consulting can show the indications of market value and help to answer that question along with identifying the key value drivers that impact the value of the business.
Assessing the range of market value of a specific business requires an indepth understanding of the historic performance of the business as well as the future prospects of the business under new ownership. Of course each business is unique in these aspects, but in general terms the market value of a business is largely driven by three factors:
- Current Cash Flow
- Growth Prospects
- Perceived Risk Factors
There are two categories of potential buyers of a business - financial and strategic buyers - and a business is likely to have a different value to each of these types of buyers. At GEC we help our clients look at their business from the perspective of potential buyers. Some of the key factors it is important to evaluate are:
- The value drivers for each category of buyer
- The historical operating proficiency of the business
- The transferability of competitive advantages
- Strength of the management team
- Potential synergies for a strategic buyer
- Industry trends
- Growth prospects of the business
- Projected financial paybacks for the prospective buyer based on various scenarios and capital structures
Contact GEC for a no obligation consultation.