Case Studies

We were asked to value a business owned by a woman who had been approached by a buyer.  Our work predicted her buyer would be willing to pay about $164,000 for her business.  However, she could easily sell for $425,000 to a different type buyer without making any changes to her operation.  

If she were to make the modest changes required to attract a third type buyer then her business would be worth $750,000. Was she able to attract a Public Company (which she was not) as an acquirer then public company valuation methods would value her business at about $1,250,000.

Our prediction as to what her present suitor would be willing to pay proved accurate and she was able to end negotiations before she had disclosed too much confidential information.  She decided to make the few changes in her operations and then sell to the type buyer willing to pay $750,000.  Six months later she asked us to sell her business, and because her earnings and the outlook for future profits had been enhanced, we sold her business for $1,000,000.