A business is going to be sold, and the current owner or the buyer wants a valuation of the business to facilitate the sale. The business may hold patents, the business operate in a stable market with a solid track record and repeat customers, and there may be other factors at work that are indicative of the long-term value of the business.
Alternatively, a business suffers a loss as a result of the actions of another enterprise and needs an estimate of the decline in sales, the diminution in value of current inventory, and the impact on the business in terms of both current and future losses.
These are two very different situations. The valuation methodology has to consider the same components and the application of the same techniques for the valuation, but also needs to be sensitive to the ultimate use of the analysis. An overall valuation of a business is different than a “but for” analysis that considers a change or loss in the business. Our methods are rigorous, easily explained, and follow generally accepted practices in the industry. And they’re specific to the problem being addressed.