Could you benefit from a rule-of-thumb or calculation engagement? Owners who need a ballpark value of their company often consider a rule-of-thumb, or range-of-value, engagement. This involves applying high-level industry multiples to your historical information to arrive at a range of values for your company.
A calculation engagement goes deeper than rule of thumb and results in a more customized value for your company. Although it relies on valuation concepts, a calculation is not as in-depth as a valuation. It typically includes an analysis of your company's historical income stream and projections, judgment-based adjustments, and applying a customized capitalization rate to your income stream. Your valuation consultant will provide a formal report with a specific value. These can, in certain situations, provide you with enough analysis of your company's value to move ahead with a sale or acquisition.
If you are in a situation where you need to know the value of your business, it can be hard to know where to start -- Brinker Simpson can help. Our valuation experts will guide you through the process and ensure you're getting the proper value engagement for your needs.
If you have questions or need assistance, please contact our office at 610.544.5900.
