The Wealthy Life - Interview with Sybil Verch
Season 6, Episode 1 (6:39 min)
How to sell your business for top dollar and retire rich, that's the dream for many business owners, the payoff for all that hard work, sacrifice, sweat, and tears that went into building the business that has provided for them and their families.
Business value is always prospective, meaning a prospective purchaser is buying the business for the future benefit they may derive from it, not what the business has done in the past. However, since none of us have a crystal ball to foretell the future we look to the past to analyze how the business has performed, how its structured, and access the risks it faces in continuing to do what it's done in the past.
This company-specific analysis is then overlaid on top of the future prospect of the market, industry, and economy to formulate an opinion of the most probable company performance in the future and that's what drives value that someone else is willing to pay for.
There are various value metrics or ways companies are valued and some may be very industry-specific, in most cases, privately-owned businesses are valued based on their cash-flow generating ability. The question a purchaser is asking is how much cash or income is this investment (company) going to generate and what is the risk associated with actually realizing these expected cash flows.
Not all valuation engagements are for transaction or retirement reasons, there are many other reasons that call for calculating the valuation of a company. Some of these occasions are, looking for investment, leveraging assets, acquisitions, issuing stock, forming employee ownership stock plans, death or divorce.
It’s not uncommon for business owners to be unaware of the valuation of their company. However, what is surprising to me is how many don’t realize the different ways a company valuation can be useful in everyday and strategic business decision-making process.
Business owners who know their company value and what levers yield the highest return on investment in terms of value creation are in a much better place to make strategic decisions regarding their business, simply because they have an understanding of where they are, where they need to go and how to get there.
To us, somewhat more important than other valuation professional is working with clients to identify way to increase thier value over time through our Value Advisory practice. Only after you understand what the business is worth you can start setting goals for where you want your value to be in the future and what levers to pull to reach those goals.
At Malahat Valuation Group, we help our clients determine the Fair Market Value of their business, shares and assets, so they can sell their business for top dollar and retire rich.
What do we do:
Malahat Valuation Group specializes in business valuations and equipment appraisals to owners of established privately-owned companies and their professional advisors.
Why it matters:
When business owners and their professional advisors need to sell, leverage, or reorganize their assets, we answer the age-old question of "what is it worth"?
We provide our clients and their advisors a peace of mind with professional valuations that stand up to scrutiny from lenders, the Courts, and CRA.
Malahat Valuation Group Inc.
1 (250) 929-2929