How Much is My Company Worth?

By Generational Equity

05/02/2022

That is a question we are often asked at our Growth and Exit conferences. The answer is it all depends…

Which leads me to a point you need to realize: Be very wary of anyone telling you what your business is worth without doing a thorough evaluation of the company, its earnings, its end markets, its growth prospects, its key employees, and the most important piece of it all – a review and documentation of your intangible assets.

So, having said all that, the value of your company will be driven by several factors, including (but not exclusively):

• The history of the business
• Your strategic growth plans
• The company’s ongoing efforts to stabilize and improve earnings
• The quality of your financials
• The industry you are in
• Your company’s market share
• The company’s five-year pro forma
• Quality and depth of the documentation you provide buyers
• The value of its intangible assets (this will vary from buyer to buyer)

But the ultimate value of your company will be driven by how much a willing and informed buyer will pay for the opportunity to participate in your company’s future. And as mentioned above, this will depend on the buyer, their confidence in your projections and ultimately how the assets they gain will help their business thrive. The old 1 + 1 = 5!

As you look at the list above and begin to consider your company’s value, one critical issue stands out: Unless you have sold several businesses in your career, you will need guidance and advice to locate an optimal pool of buyers. This is an art and a science, and something our team with Generational is extremely experienced at.

In fact, no lower middle market investment bank has sold more companies over the past decade-plus than Generational. You can review a sampling of our closed transactions here.

The success of our process is well documented and our industry accolades and awards (and M&A rankings) speak volumes about how our team is so successful. 

If you are interested in learning more about how to value your business in today’s market, how to create documentation that is valid and accurate, and most importantly, how to find and attract premium buyers, you should set aside some time and attend one of our executive conferences on Growth and Exit Strategies That Maximize Value.

Not only will you gain a significant amount of information on valuations, but you will also have a chance to meet with one of our Senior Managing Directors while you are there and discuss your specific situation.

To find a conference near you and register to attend, please use the following link:

            – Generational Conferences Near You

Our award-winning conferences are fully complimentary to you and are designed by business owners for business owners. Here is what a few of our clients have said about our meetings:

            – Insights from the Generational Conference

            – Key Take-Aways from the Generational Conference

            – Selling Your Business for Maximum Value: The Generational Equity Conference

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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