Capital
Markets Group, Inc.
conducts business valuations for mergers, acquisitions, and
corporate financing.
Our
financial analysts work with our project managers and deal-makers to be sure the
value of your company is the highest it can be based on experience and market
conditions as well as numerical analysis.
TECHNIQUES
NORMALLY EMPLOYED TO DETERMINE FAIR MARKET PRICING
There are five (5)
generally recognized techniques used to develop
a reasonable fair market price for a privately-held
company.
These
techniques allow for a willing
buyer, a willing seller, and the
absence of inordinate urgency on the part of
the seller or buyer.
Consequently, these techniques will most likely
produce a higher price for the company
than if the buyer's urgency to purchase or the
seller's urgency to divest was affected by circumstances external to the
transaction itself:
PRICING BASED ON
HISTORICAL EARNINGS
PRICING BASED ON NET BOOK
VALUE
PRICING BASED ON FUTURE
EARNINGS
INDUSTRY
GUIDELINES
ALTERNATIVE INVESTMENT
ANALYSES
However,
the value of your company is also very relative to the
buyer or lender.
While some would suggest that the value
of your company is an exact science with a fixed price, that is not
the case.
As a simple example, the value of a
company that provides water to someone living on a lake is rather low. However, the
value of that company to someone living in the desert is rather high. Even
though the two companies may be exactly alike in all other respects including
their financial statements.
Consequently, it is imperative that,
whether you are a buyer or seller or borrower, you should have a valuation based on;
-
Historical Financial Information
-
Adjusted Historical Financial Information
-
Financial Projections
-
Non-Financial Information such as market, management, etc.
AND, MOST IMPORTANTLY . . .
The identification of strategic and
corporate buyers, sellers, and lenders comes from professionals
who are in the market all day/everyday and who have a successful history of working with such
groups.
Our clients receive
the highest valuations and most favorable deal structures for their companies because we
are specialists and have daily intimate knowledge of actual
market conditions.
For over
30 years, we
have worked with company owners, management, lenders, investors, and buyers in
Europe, Canada, Japan, Hong Kong, Australia, The Caribbean, and of course throughout the
United States.
The group you will work with at
Capital
Markets Group, Inc.
is an experienced team that can add value through a
combination of financial, technical, and managerial abilities.
