The Real Importance of Business Valuation
(When Cashing Out Profitably is the Objective)

Two HBVS Projects Follow With Substantially Different Outcomes:

  1. Mid size West Coast Construction Firm.  HBVS was engaged by an engineering firm in India to value this firm in the LA area.  After initial contact the owner commented “I don’t know why you were hired to value my firm,,, it’s common knowledge that a firm like ours is worth 10 times earnings.”  The valuation project of course continued and after completion the P/E ratio was OK,  but far less than 10.  Surprise, surprise!!
  2. East Coast Audio Visual Firm.  An HBVS client since the mid 90s with multi-million $ revenues.  Along with typical and consistent growth, this client authorized numerous valuations and updates.  Each and every event, plan and activity is thereafter looked at with possible implications on value.  Then at the time of sale. owner has a profound knowledge of the firm’s sell price range.  Firm is finally acquired at an excellent profit for the owner.  Bravo!

Thus, if cashing out profitably is a high priority for your business, you may want to consider professional business valuations and/or updates to stay in touch with value as a critically important planning tool.

 

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