Step 1 Analysis
Initial Onsite Interview.
This step starts with an interview and discussion at your company where an IAG Analyst meets with you and all other partners and significant others who are part of the business.
Motivation for Selling.
The Analyst will review the sales process and your reasons for selling the business as well as the urgency of the sale. This information will help determine the type of buyer and set the stage for the development of a comprehensive Marketing Plan specific to your business, situation and constraints.
Gather Information and "Recast" Financials.
You will be required to provide at least 3 years tax returns and Profit and Loss (P&L) and Balance Sheets that you may have from your accountant. The analyst will review your expenses to understand any one time or personal items that can be removed to enhance the profit picture of the business. This will help in the valuation and pricing of the business.
Enhance Business Value.
The Analyst will also review your operations to see how the business value could be enhanced through monetary means such as reducing receivable cycles or reducing certain expenses. These factors could be used for Corporate Repair or Business Remediation if significant value could be derived prior to putting the business on the market.
The Business Valuation.
The valuation will be used to establish the value of your business and help set the asking price. The Business Valuation and its companion Business Offering Report help justify the asking price to the buyer.
The Business Valuation assesses the value of your business by looking at your financials, trends over the years, the economic conditions of your locale and overall market conditions for your product or service. It compares your business with others in your peer group and highlights strengths and weaknesses of your business.
Here are two examples of business valuations. Click on the image to get a full screen eBook version to review.
||Business Valuation 1
||Business Valuation 2
- provide a detailed ratio analysis and benchmark with the company’s peer group to indicate areas of strength and weakness.
- provide adjustments to the financial statements (recasted) to indicate a true profit picture of the company.
- utilize a combination of asset based, income based and market based valuation approaches to determine the value of the business.
- provide a reasonableness test to confirm that, given the various financing and profitability assumptions, the business will have enough cash flow to service the debt and pay all necessary business expenses.
Pre-Assessment Discussion. Following the completion of the Business Valuation, the seller, IAG and MCBI Transaction Specialists will have a conference call to discuss the valuation results, agree on an asking price, discuss various Step 4 options and agree to continue with Steps 2, 3 and 4.
Corporate Repair. If the valuation does not meet the sellers expectations, various Corporate Repair or Remediation options will be discussed. A project to aid and support the seller may be necessary to bring the value to meet the needs of the seller.