Business Financial Analysis

Your Katy TX Business Valuation Firm

Business Valuation

Business Valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the financial viability of the business.

Before the value of a business can be measured, the valuation assignment must specify the reason for and circumstances surrounding the business valuation. These are formally known as the business value standard and premise of value price they are willing to pay or receive to consummate a sale of a business.

In an actual business sale, it would be expected that the buyer and seller, each with an incentive to achieve an optimal outcome, would determine the fair market value of a business asset that would compete in the market for such an acquisition. If the synergies are specific to the company being valued, they may not be considered. Fair value also does not incorporate discounts for lack of control or marketability.

These assumptions might not, and probably do not, reflect the actual conditions of the market in which the subject business might be sold. However, these conditions are assumed because they yield a uniform standard of value, after applying generally-accepted valuation techniques, which allows meaningful comparison between businesses which are similarly situated.

Buying or Selling a Business

After years of entrepreneurship, you’re looking forward to the day when you can retire, secure in the knowledge that the business you’ve built is safe for another generation. But planning to hand over the business takes a succession plan.
The time to start thinking about selling your business begins in the start-up stage and throughout the life cycle of your business. If your business is your retirement nest egg, consider every major decision and how it will add value to your company’s exit plan.

 If you’re preparing to sell your business, you’ll first need to know how much your company is worth by conducting a business valuation. It will give you, your investors and potential buyers a good idea of what your business’s value is by looking at both tangible assets like real estate and cash, as well as intangible assets like intellectual property.

Operating a Business

An Analysis of a company’s financial position and funds flow is essential in ascertaining its ability to continue and prosper. Areas of opportunities and potential ramifications can be highlighted and identified so that corrective action may be taken.
A Company can improve its bottom line and overall operation by analyzing, monitoring, and controlling revenue and costs. Business Financial Analysis will help in this process.

Mergers & Acquisitions

An Acquisition also known as a takeover or a buyout is the buying of one company by another. This process can be friendly or hostile. It depends solely on the terms and conditions of the Acquisitions.

A Merger is the combing of two or more entities into one, through a purchase acquisition or pooling of interests.

A&W Business Solutions, Inc Can help you through this lengthy and complicated process. We will:

  • Conduct a thorough analysis  and a comprehensive due diligence of the business to determine a fair market price,
  • Perform a comprehensive study to determine and identify the most favorable tax structure for the transaction,
  • Evaluate the entire financials and the cash flow impact of the transaction,
  • Perform a complete and comprehensive comparable analysis of the industry

Do you have a question? Do not hesitate to call A&W Business Solutions, Inc for your free and no cost consultation.