Mergers & Acquisitions: Strategic Valuation Process

 

Paragon Ventures offers market valuations of healthcare business that are completely objective, independent and professional. Our valuation of a closely-held business combines financial, operational and economic analyses into a relevant and quantifiable representation of the Real Value® of the business enterprise.

 

The Paragon Ventures valuation process translates complex business valuation theory and terminology into a clear and understandable appraisal of the Real Value of your business based upon current market conditions and completed transactions of similar companies within the past 24 months.

 

Your business could be worth far more... or less... than you expect, find out the current market valuation of your business. 

 

Call Paragon Ventures today at 800-719-1555 for a no-obligation consultation.

Click on each step below for more detail on our valuation process

 

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Comprehensive Client Analysis

After executing a confidentiality agreement we begin by gathering specific data on the company.  The client completes an in-depth questionnaire to provide information on company's financials, personnel, business and marketing plans.

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Market Research

We perform extensive market research and updates on specific industry trends and forecasts, economic conditions, M&A activity, and competitors to establish industry-specific historical growth, performance ratios and projected growth, as well as pro forma credibility. 

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Recasting

We recast the current year-to-date and prior year end financials in our adjusted income statement (AIS).  The AIS reflects the business as if it were a wholly owned subsidiary of a larger company. Recasting includes removing owner compensation, non-recurring and phantom expenses or extraordinary items which private companies often use for tax benefits.

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Pro Forma

We develop forecasts of income and cash flow statements in our AIS format. We premise our findings on new owners with the financial and organizational resources to support projected growth.

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Valuation Range

At this point, we develop a valuation range based on our analysis of the business performance and actual transactions closed of similar companies within the past 12 - 18 months.  Our valuation provides a barometer of the company’s value in the marketplace and help you with the timing and preparation for a sale… when the time is right. 

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Strategic Options

We review the strategic options available to the business owner(s).  These options often revolve around exit strategies, short and long term growth opportunities, market dynamics, competitive landscape and any estate/succession plans.

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Sell Now?

At this juncture, we review the short- and long-term benefits of client options, as well as the personal, financial and investment objectives.  If the time is right for you, your business and the market, we move forward with the marketing process.  If not, we continue to be your eyes and ears to the M&A marketplace.  We stay in touch and compare notes related to the company and the current market until we identify the right time to make a move.  

Should a client decide not to sell immediately, we keep the valuation updated periodically, recognizing circumstances may change. At any point , the client may reconsider and move forward with the company's sale.

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The Market Process Begins   

We engage with the Client to begin the actual marketing process.  We prepare our comprehensive Executive Summary that describes the company, including its history, management team, approach to the marketplace, and other differentiating strengths. This critical document provides the foundation for presenting the company in its very best light to the buyer universe.  For a detailed matrix of our process, click here.

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Periodic Review and Update

If a client decides not to proceed to market immediately, we agree to update the valuation analysis periodically following its completion and will take the client to market if they so decide, when the time is right for them. This allows our clients to continue to make informed decisions about selling well into the future.

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