Sale or Merger of the Company

When exploring the sale of a private company, it is prudent to conduct a professional valuation of the business. Owners of closely held companies frequently have some idea what their firms are worth, but just as often are unaware of many factors that have a material effect on value. The research we perform when valuing your company can be extremely helpful in negotiating terms of the deal. For example, we can determine which firms are buying companies similar to the target company, the prices being paid, and the form of consideration being used. Given that it is very difficult to raise an asking price once negotiations have begun, it is generally desirable to ask somewhat more for the business than what the owner feels is a fair price. The information developed in a thoroughly researched valuation helps the seller to achieve favorable results when negotiating terms. If the buyer is offering its equity securities in exchange for the stock or assets of the seller, then both buyer and seller should be valued to ensure a fair deal. If the buyer is offering debt securities, the fair value of this form of consideration must also be carefully assessed.