We recommend that business owners get an independent valuation of their company every year so they always know what their company is worth. Independent valuations can be expensive, but we have a better option for business owners.
As a strategic partner with Waypoint Private Capital, we help business owners quickly determine the value of their company – and it’s a free service we provide.
We go through a short questionnaire with a business owner in an in-person or Zoom/Teams meeting using a sophisticated online valuation tool. To calculate market value, the software uses sophisticated algorithms developed at MIT to assess 18 value drivers.
The software then benchmarks the company against a database of over 15,000 closed transactions to develop a “most likely” estimate of what a buyer would pay to acquire the company.
At the end of the meeting, we give the business owner a report that outlines the estimated market value or enterprise value of their company – and also highlights what the company would be worth to a financial buyer if specific risks or issues are eliminated. The potential value is the “best-case” value for the company at current revenue and profit levels.
The “Gap” between the current value and the potential value provides an easy to understand starting place for improving the performance and increasing the value of the company.