Determining fair market value of micro, small and mid-cap companies, requires an uncommon combination of accounting, real estate, plant, equipment, finance knowledge and experience.
There also is need to understand the economics of a wide variety of industries and markets. Additional requirements include comprehensive and in-depth research and documentation as well as incisive, well-reasoned, and supportive business acumen. Reliance Funding has a well balanced management and strategic partner team with decades of accumulative knowledge in a wide variety of sectors.
We customarily use the cost, income and market approaches when valuing a business. Every business has unique factors that may increase or decrease a valuation. Please keep in mind that "rule of thumb" valuation approaches are not all applicable. Using a multiple of revenues, EBITDA or other net valuation approaches are not a proper methodology. When you read that some company received a XX valuation multiple, it only tells a small portion of the story.
A stock sale VS and asset sale has a different approach to valuation as well.
Your intangible assets, such as people, knowledge and intellectual property, can be just as important as tangible property. Recognized brands, copyrights, trademarks, proprietary customer or client mailing lists, and long-term contracts all can have significant value. Values placed on intangible property, however, are likely to be scrutinized closely by potential buyers and are open to varied interpretations.
There are many factors that go into valuing your business. Selling your company is a difficult decision. But with adequate planning and preparation and the assistance from Reliance Funding, even a company in dire financial straits may prove attractive to a buyer and sell for a fair market price.