Why complete a business valuation?

Most people and companies don't worry about valuations until an unsolicited offer to acquire their business appears.  Privately held businesses are not as easy to value as your stock portfolio, and if you do decide to sell, you want to ensure you maximize your purchase price.  Many firms can give you a nice report using lots of great terminology such as market cap, earnings multiples, EBITDA multiples, multiple of sales, replacement value, discounted cash flows (DCF), replacement cost, minority discounts, and more. 

The real issue is the information that feeds into the valuation technique, that is where we are experts.  While most firms create pretty reports for you, our principals have actively negotiated the purchase and sale of billions of dollars worth of transactions.  This includes raising capital and selling equity positions.  It is critical to recognize that transaction structure, tax, and a host of other issues drive valuation, more so than that swank report you paid for.

Through our affiliated broker-dealer, we can introduce you to the professionals that will help you buy a business, sell a business,  raise capital, engage in distressed asset transactions, all while knowing you are not over-paying or under-selling.  Our extensive knowledge and access to private company transaction data will give you the best information to make a decision with.  Ask our competitors what their annual database investment is -- if they are not spending $50,000+ annually, they are charging you for great MBA school assignments.

Maximize your sale, purchase or capital raise

We go beyond preaching value, we will help you structure a transaction to resolve a business divorce, ESOP, personal divorce, estate distributions, partner or equity buyouts, and more.  Our valuations and structuring will see you through the process.  Don't be fooled by advisors quoting IRS rules for gifting, honestly it is easy.  Ask us how to structure a transaction using 338(h)(10) or 336(e) elections, off-shore inversions, and more.

Through our affiliated broker-dealer we can lead your transaction or capital raise through private placement offerings and financial advisory services.  The reason other firms can't do more than create nice looking reports is that they (i) lack the actual experience of billions in transactions, whether as individuals or a firm, (ii) they lack the requisite training, which at our firm includes law and finance, and (iii) they have not made the effort to become a SEC registered broker-dealer.  Contact our Managing Director, Luka Erceg to learn more about services offered through Heritage Financial Systems, LLC.