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Services - Middle Market
Estimate of Value
An Estimate of Value (EOV) is an estimation of what your business is worth. These services come in two types: the legal kind required for litigation and a more informal kind. The second is of higher value to you as a business owner, as it avoids the jargon required for legal documents. For that reason, our EOV service provides a more informal valuation that gives you an idea of what your business is actually worth in the market.
Our price for this service is only $1,500; comparable services from other companies run $5,ooo-$10,000. Evaluation services are not an exact science. However, we have over a decade of experience making estimates, and our estimates are more often than not close to the fair market value, usually within 10%.
EOVs are helpful if you want to sell your business, but they are valuable for other reasons, as well. You can use our service to compare yourself to similar businesses or to plan for the future of your business. Our EOVs will help you make better decisions, as you will be more informed about your place in the market.
As a business owner, you will eventually want to leave your business. How you do it is up to you, but you need a plan for this inevitability, as it can up to 5 years to exit a business. Therefore, you need to set goals and decide what will happen to the business ahead of time. When we help you develop an exit strategy, we will take the time to review your business thoroughly and provide you with a written report at the end. You can shelf this plan for future use or employ it immediately.
You can exit a business in a variety of ways. You can set up an inheritance plan, where a relative receives the business. You can sell it to a new owner. You can also move to an ESOP (employee stock ownership plan) or an IPO (initial public offering). Maybe you simply want to change how you do business by moving the company, changing industries, or refocusing your offerings by getting rid of side businesses. You may also decide to make your business larger by moving to new markets. Whatever you decide, we can help you make a plan, and we will help you through the transition.
First, we make a list of the professionals you need to assist with each step of the process. We have specialists on staff that only deal with this type of work, as the process is somewhat tedious. We will provide you with a whole team of experts, including an M&A advisor, several attorneys, financial specialists, and even a business psychologist, all of whom can help you weigh the many factors of this decision. Our specialists know the ins and outs of the process and will make sure you are following the letter of the law every step of the way. They will also help you consider all your options, so you can make the best decision. The ultimate goal of this exit plan is to make the most of your business, to give you the highest value without risking your business, while reducing costs like the taxes you pay.
Our advisors will also help you establish the value of your business. Knowing the value can help you decide when you are ready to leave—that is, you may want to wait a few years to increase the value or you may be ready to bow out as soon as possible. Part of that process is improving the weaker parts of your business; by making a few changes, you can greatly increase the value of your business.
We make the process affordable to you by keeping your costs low. However, keeping costs low for you does not mean our service to you will suffer. We are putting years of experience into action, and we will give you detailed instructions on how to sell your business that we customize to your needs. These instructions will guide you through the actions you need to take preceding the sale of your business, and we will help you find the right price for your business.
We make it our top priority to maintain your privacy throughout the process. We also pride ourselves on creating a plan in a timely manner, so you will not wait months for the results. In fact, we usually have a plan back to you in a week’s time, so that you can make a decision on how you want to move forward.
The Business Summary or Selling Memorandum is a detailed report that is professionally bound. We take the time to evaluate your business and then reproduce that information in a way that anticipates potential buyer’s questions. It also helps protect you against legal action after the sale, as you will have presented all information up front to the buyer.
This summary is an important aspect of selling your business. Your buyers need this information to make an informed choice about the purchase. We know that spending more time preparing this document is important, so we invest extra time in it to make the process of selling easier for you.
Valuations and Appraisals
These types of appraisals are not legal documents for court, but they are still beneficial for your business’s development. This type of valuation can help you determine where your business can be improved, which in turn will increase the value of your business overall. It also provides you with an approximation of value for the business, helping you strategize. Whether you are trying to plan an exit strategy or whether you want to develop your business, an appraisal will give you a starting value.
Of course, knowing the value is essential when trying to sell your business, as it will help you decide on a price. By setting the price at a reasonable amount, your business will sell faster. If you have questions, please talk to one of our representatives about how valuations and appraisals work before deciding on one for your business.
Presale Advisory Services
Businesses sometimes do not sell, but you can help avoid that possibility by planning ahead. Even if you do not want to sell in the near future, you need a plan well in advance, so now is the time to start thinking about it. A plan will help you decide what kind of future you want and how you can achieve that future.
At Morgan & Westfield, we will help you make an exit strategy, and we will be there when you want to carry it out. We want to make the whole process as easy as possible by assisting you with the following:
- Creating a valuation for your business
- Making your business ready for due diligence
- Seeking out potential buyers
- Helping you to rid your business of potential liabilities
- Removing obstructions that stand in the way of selling your business
Creating an exit strategy is complicated, so planning ahead is imperative. By planning ahead, you will have time to improve the weaker parts of your business, making your business worth more when it comes time to sell.
Occasionally, the estimation we give our sellers is below the value they expect. If you find yourself in this position, our experts at Morgan & Westfield can help increase the value of your business.
We are experienced in the market, so we know what creates value in each industry. We will inform you of the industry standards and what your weaknesses are in comparison. We will assist you in figuring out the quickest and easiest way to increase the value of your business.
If you do not have the skill to make these improvements, we can help you improve your business. We work with a large group of consultants who are specialists in finances, marketing, sales, business management, and lean manufacturing. We will work with you and these experts to guide you through the process of improving the weakest parts of your business to be on par with the strongest parts. Overall, this process will increase the value of your business before the sale.