Valuing a Business

Patrick Faughnan Director - Corporate Finance

What’s driving value for your business?

Fortus’ Corporate Finance team are here to help identify your business’s specific growth, efficiency and financial value drivers that are feeding your long-term corporate strategy. These variables are those that either position your company in the most favourable light to prospective buyers, or simply to build shareholder value. This includes having a skilled workforce, a loyal client base and business efficiencies.

We’ll take an objective deep dive into the quality of your revenues, margin expansion, product/service innovation and operational efficiency to build an irresistible picture of your business. As part of this analysis, we’ll pinpoint activities and practices that’ll have the greatest impact on the value of your business and provide recommendations on opportunity areas worth investing in, to increase value even further.

Fortus’ Corporate Finance team have supported hundreds of business owners nationwide to transform their businesses, attract the right buyer and achieve maximum value.

FINANCIAL DUE DILIGENCE MATTERS

The number one rule for investors is determining whether your business will provide a good return to them each year, so, as can be expected, they’ll be closely examining your business KPIs with a fine-tooth comb. Your balance sheet, income statement and cash flow statement need to be in tune and your data provenance faultless.

Questionable outcomes from the due diligence process can be a real deal breaker or adversely affect the value of your business. Not only that, but inaccuracies also create unnecessary costs and delays on both sides of the transaction.

Here are just a few things we’ll analyse to determine the overall value of your business, so you can make an informed decision moving forward.

  • A review of your financial statements as above.
  • Your company’s management structure.
  • Capital structure (a combination of debt and equity used by your company).
  • Potential future earnings and market value of your assets.
  • Comparison to other ‘players’ in your marketplace.
  • Identification of any potential red flags before the company’s put on the market.
  • A dive into the company ‘SWOT’ to make sure opportunities are manifold, and weaknesses mitigated.

What will a potential buyer be looking for?

It goes without saying, a potential buyer will be interested in the top line. They’ll want to know the true expansion potential of your business and will look for trends in sales over a period of time, year-on-year. Your Return on Invested Capital (ROIC) indicates to them whether your company’s succeeding financially.

Plus, they’ll need reassurance that…

  • The business risks are acceptable, and balanced by the returns available.
  • The quality of your earnings is stable and growing.
  • The dependence upon the departing owners has been reduced by good management.

Who can advise how much my business is really worth?

Your business is in more than capable hands with our Corporate Finance team. They’re experienced in presenting thorough and accurate company valuations, and take the time to get to know you, your team and how your business operates in great detail.

With Fortus’ in-house professionals spanning Tax, Business Performance Improvement (BPI), Accounts & Outsourcing, Audit & Assurance, and HR (to name just a few), we’ve got the resources to call on to assist in securing the very best deal for you. Not only that, but we’ll also make sure you’re current on all taxes, as any concerns in taxes of any kind can stop a deal in its tracks.

Don’t let time work against you

If you’re considering selling your business, now’s a good time to get in touch with our team to start the first valuation step.

Time will be needed to identify and fix any potential issues and get your financial paperwork in order well before your business is listed for sale. However, as the saying goes, ‘time wounds all deals’, so as soon as it’s listed for sale, we’ll act fast to ensure momentum’s maintained throughout the entire transaction.

“When I sat down for that first meeting with Mark Standish from Fortus Corporate Finance, we had an honest conversation about my plans: it was – an eye-opener. It was the first time anyone had asked me those kinds of questions.”

Charlotte Jamme Mia Tui

Interested?

Get in touch with our Corporate Finance team.

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