It is conducted to determine the overall standing and operation of a business before it is sold by the owner to a potential interested buyer. Evaluating a business can take different forms, depending on the reason for the evaluation. A small-business owner might wish to assess his company’s profit-making ability, operations, staffing, marketing or net worth. FINVERX has the required expertise to evaluate various business options. We are capable to suggest best solutions based on our evaluations for new businesses as well as acquisitions and mergers, using objective measures, and evaluating all aspects of the business. We have developed an extensive checklist to ensure that the business evaluation is completed by looking into every aspect of the business.

Our business evaluation techniques include, but not limited to, an analysis of the company’s management, its capital structure, its future earnings prospects, market value of its assets, review of financial statements, discounting cash flow models, taxation issues and similar company comparisons. The tools used for valuation can vary among evaluators, businesses, and industries. Where needed, we also engage other experts, including lawyers, engineers, actuaries for their professional input.

Estimating the fair value of a business is an art and a science; there are several formal models that can be used, but choosing the right one and then the appropriate inputs can be critical for decision making.