Dollars & Sense of Business Valuations

Buyer: Paragon Ventures
Seller: Paragon Ventures
Date / Year: November 18, 2020
Sector: Healthcare and Life Sciences

Dollars & Sense of Business Valuations

Valuation has always been a pivotal factor in a business owner’s decision to sell.  There are frequently additional motivating factors such as retirement, health, business opportunities, stress, and a variety of others, but they are usually coupled with an ability to obtain the right price and terms for the business.   At no cost or obligation, we provide an analysis on the business that covers value and other market realities so you understand how much your business is worth in the current market.   We do this to help a business owner to make informed decisions before making any commitments to market and sell their business.

This process starts with an introductory and confidential phone call or meeting to cover some basics.  From there, we execute a confidentiality NDA agreement to request the last  year and YTD financial information, typically in the form of profit & loss statements and balance sheets or accountant prepared financial statements.  We then analyze and assess any appropriate recasting of your financials to evaluate profitability, trajectory and other factors, which directly impact the valuation and marketability of your business.

Since businesses are most often bought and sold based on LTM (last twelve months) multiples of EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) or SDE (Seller’s Discretionary Earnings), this is a critical step.  Once the analysis is complete, we will schedule a time to follow up with you to discuss valuation, the process, and your specific strategic options in the current market and those that may be on the horizon.  Again, this work and our initial consultation in strictly confidential and offered at no cost or obligation.

Note on Covid19 Implications on Valuation Analysis

The pandemic has had substantial impacts on many businesses and healthcare companies are no exception.  Our experience with closing healthcare business sales and mergers during Covid19 has brought us valuable insight into both the challenges and opportunities during the pandemic and beyond.  You should expect buyers and investors to question if business operations have been restructured as a result of COVID-19 and how resilient the business will be post pandemic.  How has the business supply chain been impacted and will demand for the company’s products and services remain healthy after the COVID-19 crisis?  Other considerations will be around if the company has sufficient excess working capital to weather the continued impact of the pandemic?  From complex forecast analytics to normalization of financial performance, we assess these metrics and use real time experience to guide our clients to current market valuations and strategic options during these challenging times.

For more information, reply to this email or click here to contact us to schedule a confidential discussion.

https://www.paragonventures.com

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