Company Valuations

Whether you’re preparing to sell your business, plan your exit, attract investors, or make more informed strategic decisions, conducting a company valuation is the ideal place to start. Let Pacific M&A guide you through the intricacies of valuation, ensuring you make informed decisions to achieve optimal outcomes.

Pacific Mergers and Acquisitions’ valuation department has been performing valuations for almost 20 years when, in the absence of useful tools to assist in determining the true market value of a business/company Pacific Mergers and Acquisitions developed its own valuation software (fat-software.com). Since its inception, Pacific Mergers and Acquisitions boasts a high level of accuracy in its interpretation of what buyers would be prepared to pay for the business/company affording its clients the opportunity to assess the reality of their expectations and determine if they prefer to “Stay and Grow or Sell and Go”.

A proper valuation considering the purpose thereof, is essential when selling a business/company for multiple reasons including:

1. Company Owner Expectations Check:

Accuracy in interpreting what the market would deem the value of one’s company/business to be is essential in assessing one’s own expectations. Should there be a gap in value between the assessment and one’s expectations, value building or value creation action can be initiated in order to bring the value in line with the expectations. Whether a valuation is under one’s expectations, or over, it is important to consider such gaps in order to not waste opportunities or leave money on the table.

Besides reasonable assumptions and considerations, a proper valuation must take into account various factors such as historical performance, future projections, efficiencies, assets, liabilities, market conditions and economic environments, growth opportunities, possible synergies, return on one’s investment, risk, potential, industry trends, and multiple value drivers to arrive at an objective price.

2. Buyer Trust:

Aside from a good fit from both a seller and a buyer’s perspective, a potential buyer is likely to be much more trusting of the value they receive for the anticipated purchase, if they can trust that its value has been accurately assessed and the expectations are realistic. A proper valuation also helps one understand the value drivers and also to justify the expected price to a buyer at times of need or where a negotiation takes place relative to value. Such buyer trust will also enhance the sell side negotiating power.

3. Maximize Return on One’s Often Lifetime Investment:

Selling a business/company is often driven by the desire to maximize return on investment while exiting at an opportune time. A proper valuation helps identify areas where improvements can be made before selling, in order to increase and maximize the business’/company’s overall value.

Pacific M&A’s  business valuation department operates autonomously from the advisory side in order to ensure the valuations are arrived at objectively, with no advisor influence and as a true interpretation of the real market value we call the “Most Probable Selling Price”. This comprehensive process considers the financial parameters and key value drivers in a “value-gap analysis”, providing owners with clear insights into which factors need focus to enhance and maximize the value of their strategic transaction.

Let Pacific Mergers and Acquisitions guide you through the intricacies of valuation, ensuring you make data backed informed decisions to achieve optimal outcomes.

Why Business Valuations Are Important

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A precise business valuation ensures that both buyers and sellers have a fair and objective assessment of the company’s worth. This helps in negotiating fair terms, securing financing, and ensuring a smooth transaction process.

Successful Exit Planning

For business owners planning to sell their business, an accurate valuation is critical for maximizing the return on their investment. It helps in setting a realistic asking price, attracting potential buyers, and facilitating a successful exit strategy that aligns with their financial goals.

Informed Decision-Making

Business valuations provide a clear and accurate understanding of a company’s financial health and market position. This information is essential for making informed strategic decisions, whether it’s for growth planning, restructuring, or evaluating potential investment opportunities.

Securing Financing

A thorough business valuation is essential when trying to secure loans or attract investors. Lenders and investors rely on accurate valuations to assess the risk and potential return on investment. This transparency and detailed financial insight make it easier for businesses to obtain necessary funding.

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The attention to detail provided by Pacific Mergers & Acquisitions is very impressive and the work ethic is nothing short of excellent. Truly a professional organization. We have personally experienced over a decade of perseverance to our business goals and unwavering dedication to solving any issues that came our way. Sigma 5 in my books.

- F.X.

Pacific have played a pivotal role in our lives this past year, skillfully navigating us through to successful completion of the sale of our business. It has been such a pleasure and privilege to work with you and we are deeply grateful for all your support.

- V.W.

This team is the true definition of integrity. I have never experienced such professionalism and knowledge in the sale of my business. The kindness, care and attention that went into the deal made me feel I had hired the right team. The organization and updates every step of the way put my mind at ease. The care throughout made the sale of our business smooth on my husband and myself so we could focus on running the business and focus on our lives. We are so grateful to the team at Pacific M&A. I couldn’t imagine doing this on our own! Thank you!

- C.T.

From listing, to site visits, to an offer, to an acceptance, to waivers, to closing – it took only 3 months! We never, ever, would have thought this was possible. This note is just to acknowledge the comprehension, courtesy and professionalism throughout the whole process. It was very reassuring to know that you were at our side every step of the way – any time of the day/night – and any day of the week. We realize that we are not one of your larger accounts – but at no time did we ever feel that we were treated with any less respect.

- D.M.

Thanks for everything that you’ve done to make this deal go through. It’s not the easiest deal to close, I’m sure, but your patience and professionalism in handling the whole process has made it a lot easier for all the parties involved. Without your assistance, I am sure this deal would not have closed and we would still be selling the business (and the Buyers will shopping for one). Thanks again – and Congratulations to you too – for making the almost impossible possible!

- A & K

Thank you for all the hard work in putting this deal together. It was great working with you. I will not hesitate to recommend you to represent any friends or acquaintances looking to sell their company here in Kamloops or elsewhere. I have learned a lot from this process and thank you for being patient during my learning.

- J.I.

We recently had Pacific Business Brokers sell one of our businesses. From step one, they give you a feeling of absolute confidence that you have the best company on the job selling your business. Very professional and great communication with their clients. Our business sold in less than 6 months for full price. They stayed with us every step of the way making it a surprisingly stressless event. I wouldn’t hesitate to recommend them to anyone thinking of taking the plunge and selling their business.

- D.S.

I used their business and they sold my business within 2-3 weeks. Good people, they have lots of buyers – good buyers. I referred my friend and they sold their business as well. They tried to sell it themselves in a year, and Pacific sold it within 2 months.

- G.

The team at Pacific really helped my business partner and I out by providing their valuation services at a pivotal point with our business. They hit the promised timelines and communicated well throughout the process. upon presentation, they recommended we hold the business for a couple more years prior to selling and even gave us ways to improve the value in that time. Would highly recommend.

- C.K.

Pacific M&A are the most professional group of individuals I have ever had the pleasure to work with. They helped me navigate the successful sale of my business, which included an extensive CIM. The Pacific M&A team were there from the beginning to the end and beyond so that I was assured that all my concerns were met. I would not hesitate to recommend Pacific M&A.

- D.J.

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