Our Opinion of Value report utilizes three primary valuation methods to provide a comprehensive and balanced assessment of your company's worth.

Tangible Asset Backing (TAB)

• Objective: Determines the value based on the company's tangible assets.

• Process: Lists all tangible assets, adjusts for fair market value, and subtracts liabilities to arrive at the net tangible asset value.

• Use: Particularly relevant for companies with significant tangible assets and current negative EBITDA, providing a conservative baseline value.

Discounted Cash Flow (DCF)

• Objective: Estimates the present value of the expected future cash flows.

• Process: Forecasts future cash flows based on historical data and industry trends, then discounts these cash flows back to the present using the company's weighted average cost of capital (WACC). Two DCF analyses are performed:

• Use: Suitable for understanding the value creation potential from ongoing operations.

Market Comparables

• Objective: Derives a value based on the valuation multiples of similar companies in the industry.

• Process: Identifies comparable companies, gathers their financial data, and calculates industry averages for relevant valuation multiples such as Price/Earnings (P/E) and EV/EBITDA. These multiples are then applied to the corresponding financial metrics of your company.

• Use: Provides an external benchmark for your company’s value, supporting and substantiating the findings from the DCF and TAB methods.

An Opinion of Value provides a reliable estimate of your company's worth, which is essential for making informed financial decisions. It helps in setting a fair price if you are planning to sell your business, attracts potential investors by showcasing your company’s value, and supports strategic planning and decision-making. Additionally, it can be crucial for legal and regulatory compliance, ensuring that your company meets necessary standards for financial reporting and other requirements.

An Opinion of Value is essential for:

• Strategic Planning: Helps in making informed decisions about the future direction of the business.

• Securing Financing: Investors and lenders often require a reliable valuation to provide funding.

• Mergers and Acquisitions: Accurate valuations are crucial for negotiations during sales, mergers, or acquisitions.

• Growth Planning: Understanding your business's worth aids in effective financial planning and growth strategies.

There are several risks to consider, including:

• Market Fluctuations: Economic conditions and market trends can change, potentially impacting the accuracy of the valuation.

• Data Accuracy: The valuation is based on the data provided. Inaccurate or incomplete information can lead to a misleading valuation.

• Assumptions: Valuations involve assumptions about future performance, which may not hold true. Changes in the business environment or internal operations can affect these assumptions.

• Regulatory Changes: New regulations or changes in existing laws can impact the valuation by altering market conditions or operational costs.

IThe accuracy of the Opinion of Value depends on the quality and completeness of the information provided. Our experienced valuation professionals use industry-standard methodologies and cross-check results using multiple approaches to ensure a reliable and thorough valuation.