Valuation for Buying or Selling a Business

Hilliard Lyons Investment Banking’s team approach to buying or selling businesses often involves comprehensive valuation services. Our work can include evaluing a company as a standalone entity or combined with a buyer’s operations. Through discussions with management and from our own independent research, the most likely valuation scenarios are analyzed.

For a seller, our valuation analysis provides a realistic assessment of what might be obtained in a transaction and provides a basis for negotiation between the parties.  For a buyer, our research and analysis offers a perspective on the key factors driving business value and on the target’s strengths, weaknesses, opportunities and threats. The effect of acquisition financing can also be demonstrated by showing the impact of added debt or equity on value. Finally, comprehensive valuation analysis helps inform a decision on deal timing – whether to proceed with or defer a transaction.

A valuation project in this area might include the following elements:

  • Normalizing historical earnings and cash flows
  • Search for comparative transaction
  • Impact of synergistic initiatives
  • Identification of key customers and suppliers
  • Development of financial forecasts
  • Guidelines public company analysis
  • Appraisal of intangible assets
  • Site visit and management interview
  • Analysis of key contracts