The age old question…
What is My Business Worth? We Have The Answer!
Paragon Ventures Market Pulse® 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. Our valuation process translates complex business valuation theory and terminology into a clear and understandable appraisal of the market value of your business based on current market conditions and completed transactions of similar companies within the past 18 months. As a leading market-maker in the healthcare industry and with specific healthcare transaction experience, Paragon uses deal specific data to prepare our valuations.
Our valuation process incorporates financial analysis, current transaction comparables, and our proprietary Market Pulse® real-time market assessment. Upon completion of our analysis, we will formulate our opinion based on appropriate comparable transactions and current market dynamics to provide you with a written valuation report. Paragon Ventures’ valuation report will provide you with the current range of market value and the basis for our valuation. We will also highlight and discuss with you those areas of the business that are either contributing to or detracting from the valuation.
The valuation will provide you with the information you need to quietly assess the current market potential of the company and gauge how your bottom-line results and current strategic direction is valued in the current market environment. Many healthcare business owners use our barometer of the company’s value to help with the timing and preparation for a possible merger, acquisition or sale. Your business could be worth far more… or less… than you expect, find out the current market valuation of your business.
Comprehensive Client Analysis
After executing a confidentiality agreement we begin by gathering specific data on the company, its history, and performance. We provide a client valuation checklist and questionnaire to guide the data collection process on the company’s financials, personnel, payors, products, contracts, business, and marketing plans.
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. We perform live-market interviews with pre-qualified, active buyers and investors using our Market Pulse to provide proforma credibility and confirmation of current market variables.
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.
We prepare client specific pro-forma including analysis of collections, growth trends, forecasts and cash flows. Our process highlights synergies and strategies targeted to maximize the results of a prospective change-of-control transaction.
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 helps you with the timing and preparation for a sale… when the time is right.
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.
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.
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.
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.