Business valuations for small businesses and professional practices are challenging to complete. Thus, professional expertise is required to capture the true economic reality of the company and to make the necessary adjustments to the balance sheets and profit & loss statements. Since no two businesses are identical, an independent analysis is required to determine the correct value of each business. Thus, generic software packages and automatic or do-it-yourself business valuations that can be found on the Internet are typically inadequate.

Magnus Investment Services valuation professionals assist clients and counsel with numerous business and asset valuation matters. Our valuations have involved businesses and tangible and intangible asset valuations in various industries including distribution, healthcare, manufacturing, real estate, retail, service, and technology. Our clients may range from businesses, partnerships, individuals to not-for-profit organizations, and governments seeking independent and objective valuations.

Our base standardized valuation process includes the following:

 

(i)         Understanding the business                           (e.g. industry & competitive analysis)

(ii)        Forecasting company performance             (e.g. pro-forma analysis)

(iii)       Selecting the appropriate valuation model    (e.g. absolute vs relative)

(iv)       Converting forecasts to valuation                (also involves subjective judgment)

(v)       Applying the valuation conclusions

Types of Valuation Services

  • Corporate Valuation
  • Asset Valuation
  • Public and Private Equity, LBO, Venture Capital Valuation
  • Corporate Assets & Liabilities
  • Structured Products and OTC Derivatives

Business Valuation techniques

Income, asset and market approaches

  • Income
    • Discount or capitalization rates
    • DCF
    • CAPM
    • WACC
    • Build- up method
    • Capitalized cash flow
    • Residual Income
  • Asset-based
  • Market-based
    • Guideline public company method
    • Guideline transaction method
    • Prior transaction method

We take into perspective appropriate custom factors such as the following:

> discount of lack of control & marketability,

> control premiums

> derivative pricing

> intangible asset