MergeQuest offers a host of business valuation services that are tailored to fit your firm's individual needs and budget.
Our Principal is a recognized expert in business valuation techniques and methodologies. Over his many years of industry experience, he has developed a unique expertise for preparing business valuations for businesses in the Staffing Industry, including all sectors of staffing, with extensive experience in IT Staffing valuations, in addition to IT Services Industry businesses.
We offer business valuation services for a variety of purposes: √ Selling or Buying a business √ Shareholder or Partnership Agreements √ Buy - Sell Agreements √ Strategic planning √ Exit strategy planning √ Estate planning √ Business succession within family-owned businesses √ Divestiture of business units or segments √ Management buyouts √ Chapter 11 Reorganizations / Chapter 7 √ Litigation support √ Marital dissolutions (divorce) √ Employee Stock Ownership Plans (ESOP's)
We believe that every business valuation is unique. As such, our valuation services adopt a value-added approach by taking into account strategic assessment of not only the company's historical performance but its growth and profitability potential along with the evaluation of the market, industry and relevant economic environments.
Our valuation services are also designed to help you pinpoint your organization's financial challenges or operational inefficiencies, while providing swift and practical solutions to address and resolve those issues – so that you can focus your time on improving the market value of your business.
__________________________________________________________________________________________________ More Art than Science
Placing a value on a service business is more art than science, as there are different valuation methods along with other variables that play key roles in valuation establishment.As such, any "good" valuation is one that selects the appropriate valuation methodology while incorporating as many of the valuation variables into the "mix" to produce an end result much like that of a well-orchestrated symphony.
The generally accepted valuation methodology for Service firms (e.g. Staffing, IT & Healthcare Services) is a hybrid of approaches that utilize judgments, in particular, judgments about the firm's historical and current financial performance and present financial condition - in addition to establishing some reasonable assurance that the business will continue to perform in the future as it has in the past. The most relevant valuation methodologies used in these industries are the Income ("Earnings") and the Market Approach. These accepted methodologies utilize both quantitative and qualitative data to drive the assessment and valuation of a business. While the quantitative variables involve the firm's financial performance and condition, the often overlooked qualitative (non-financial) variables are those that will also influence the firm's value.
The qualitative variables involve the organization’s operating "profile" and history.Factors such as the firm's:
◊ Years in business ◊ Number and size of branch offices ◊ Annual rate of revenue and profit growth ◊ Client and industry diversification (does the firm rely on one or a few major clients – or industries?) ◊ Service offerings (are the firm's services readily available in the marketplace?) ◊ Employee labor skills (are the labor skills of your employees in demand or hard-to-find?) ◊ Geographic market ◊ Future outlook of the business, including its market(s) and industry
In all, there are about a dozen of these qualitative variables that will help establish the essential components of the valuation basis for a Service business.
Given the many complexities of the valuation model and related methodologies, our principal can help you as an experienced financial and valuation professional to assist you with the proper valuation of your business - a professional who is very familiar with your particular industry.