Business Valuation

Optimal Valuation is Both a Science and an Art

Do you know what your company is worth? An accurate business valuation is essential, especially during the major milestones in the evolution of your business, from operational optimization, buying, selling, or other business initiatives like securing new investment or financing.

With both internal and external factors influencing the value of a given business, you need broad and deep expertise to ensure that the assessment is accurate, objective and optimal. Once you ensure that you have the necessary experience, objectivity, and perspective, there are several approaches to business valuation depending on your company’s attributes and structure. Credible third parties like TP4 Advisors and our Referral Partners can ensure optimization on both fronts, reducing the risk of under- or over-estimating, and avoiding surprises at decision or negotiation time.

Our Business Valuation Approach

Understanding the financial risks and implications associated with business transactions, TP4 Advisors uses multiple business valuation methodologies to confirm and maximize the value for each Main Street or Lower Middle Market client’s business we engage with.

Our approach enables you and us to understand the essentials and the nuances of your business and your marketplace. We consider all aspects of your operations, as well as all relevant external factors, and then build the optimal pricing financial case for your business.

Additionally, we provide operational valuations to benchmark a client company’s value annually so they can better align their strategic and financial performance, as well as improve their execution/results going forward. We help our clients understand the real value of their business and then use that knowledge to make more informed business decisions.

We offer four different valuation options to tailor our services to your company’s specific needs:

  • Operational Valuation Analysis with Roadmap
    • Estimated expected open market valuation of company
    • Review of the company’s overall financial situation
    • Review of company’s balance sheet
    • Review of company’s income statement
    • Review of company’s statement of cash flows
    • Review of company’s key performance indicators (KPIs)
    • Recommended “Next Steps” for 30-90 days and 91-180 days provided
  • Opinion of Value
    • Cost efficient overview of the company’s value
    • Discounted cash flow (DCF) analysis of historical financials and relevant company projections
    • Discount rate for DCF based on the longevity of the company, the company’s current health, and broader market’s strength/weakness
    • Client receives a one-page report with summary business valuation
  • Business Valuation
    • Everything in the Opinion of Value
    • Outside transaction information from DealStats is utilized for comparable transaction analysis
    • Company’s assets’ value (purchase price minus depreciation) are assessed
    • Multi-page report delivered to client on valuation findings
  • Certified Business Valuation
    • Everything in the Business Valuation
    • In-depth analysis of all areas and aspects of the company
    • Official, legally-binding company valuation is delivered to client

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