Keats Group, LLC
HomeSelling Your BusinessValuation ServicesBuying a BusinessBusiness Real Estate ServicesOur PeopleContact UsCode of EthicsBusinesses for SaleTestimonies

Valuation Services

In more than 250 business worth valuations, we have used several methods depending on the purpose of the valuation. We continually refine industry approaches based on our experience with sales and purchases of private businesses in this market. These real-world transactions provide better comparative data on pricing than published broker sources, which contain a disproportionate share of very small business transactions.
 
We meet to discuss your business in detail, reviewing the financial statements, products, assets and sales relationships. Our valuation steps include:
  • Determine the true earnings of the business to the owner (Owner Discretionary Cash Flow, or ODCF) and assess how cash flow will change for the buyer.
  • Calculate tangible assets included in the business. We consider which assets might lessen the perceived value for prospective buyers, such as excess or non-marketable inventory, and we develop terms to help deal with these items.
  • Compare the range and average of gross and net multiples of ODCF for similar types of businesses, and return on investment in relationship to sales and income risk in the business.
  • Chart internal and external trends. Our proprietary 20-point evaluation helps determine if the selling price should be at, above or below the formula-driven, cost or market-based comparable business selling prices.
  • Analysis from potential buyer’s viewpoint. We excel at determining the relationship of capital invested to ODCF after projected operating adjustments, annual debt amortization and product market position.
  • Determine listing price and terms.
Keats Group can provide business worth valuation to support: sale of all or part of the business; succession planning; structured sales (deferring proceeds for tax advantage); employee buyouts and stock ownership plans; changes to partnerships; estate transfers, divorce settlements and other needs for valuation relating to transferring business ownership.

Keats Group, LLC