M&A Services — Strategic Valuation Algorithm™

  • Strategic Valuation Algorithm™
  • Step 1: Comprehensive Client Analysis  

    With the assistance of your financial advisor, you or your management team designates, will complete an extensive questionnaire about your company including its history and organization, its markets, its products and customers, its competition, its finances, its assets and organization, and its personnel. This step is subject to your review and approval.

  • Step 2: Market Research  

    We will perform comprehensive market research to establish industry specific historical and financial performance ratios along with overall industry trends and current market conditions. The market research further assists us in ascertaining any potential growth opportunities for your company as well as serving as a basis for analyzing the financial status of your company. This step is subject to your review and approval.

  • Step 3: Financial Statement Adjustments  

    We will recast and adjust your last five tears of financial statements to reflect the true earning capability of your company. Traditionally prepared financial statements generally do not reflect a company’s actual asset value, its true earning capacity, or its true financial performance. Typical financial statements also do not take into account discretionary shareholder expenses and one time or other non operating expenses. Your financial advisor will work at length with you to restate and recast the financial statements of your company to accurately reflect its actual earning capability so as to maximize the value obtained for the business. This step is subject to your review and approval.

  • Step 4: Financial Statement Projections  

    Your financial advisor will develop five-year forecasts of income statements and balance sheets based upon historical financial performance, adjusted financial performance, and market research along with input from you and or your management team designates. These final documents are subject to your review and approval.

  • Step 5: Valuation Computation

    We will compute the weighted average of earnings plus prepare a comparative financial analysis. We will then prepare a summary of the non-financial risk factors and determine capitalization rates and multipliers. Finally, we will adjust for control premium considerations, minority interest considerations, marketability considerations, and other suitable adjustment factors.

  • Step 6: Company Value

    We will provide a summary of valuation methods along with the approaches to valuation for the company. We will then prepare a computation of value plus an opinion of value for your company.

  • Step 7: Valuation Presentation

    Your financial advisor will provide you, and or your management team designates, with a comprehensive valuation book that will include the purpose for the valuation; an opinion of value; company description; industry conditions and outlook; regional and national outlook; financial statement analysis, adjustments and forecasts; computation of the company value along with the conditions and assumptions for the valuation; our certificate and qualifications, and sources of information.

  • Step 8: Sell Now? NO!

    If the ownership of the company concludes that it is the wrong time to sell because of the current company valuation, your financial advisor can assist you with increasing the value of your company by using our proven methods for Building Value. Your financial advisor can also assist you with developing and implementing a well designed Exit Strategy using our proprietary EquityExit™ process for use when the company’s value has risen to a level commensurate with your Exit Strategy objectives.

  • Step 9: Sell Now? YES!

    If the ownership of the company concludes that it is time to sell, your financial advisor can take you through the steps of our proprietary Strategic Selling Process™.

  • Client Review & Approval  

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Mergers & Acquisitions

“I am writing you a letter to personally thank for the outstanding service that you provided me regarding the marketing and selling of my company.
After interviewing several merger and acquisition specialists and business intermediaries, it became clear that you and your company stood out from your competitors.
After engaging your services, you appraised my business, prepared a thorough representation package including all the key elements of my business, and provided pre-qualified, potential buyers with an elaborate marketing package regarding my company.
More importantly, you marketed the sale of my business confidentially, brought me several offers from qualified buyers and companies and ultimately brought me a full price offer from an individual buyer who was a perfect match for Darcom Computers. Also, not one of my employees, suppliers, or customers was aware of the pending sale until it was completed.
Thank you again for your professional assistance in selling my company to an exceptionally qualified buyer. I would certainly refer anyone interested in buying or selling a business to you.”

Michael M. Stoye , President, Darcom Computers