InSight

Exit and Growth Strategies for Middle Market Businesses

How Do You Value My Company?

By Kim Levin | May 04, 2011

How do you value a business?

It’s an analytical process.  Everyone has a little bit of a different twist to it.  But first we take the company’s accounting financial statements and adjust them for the ownership benefits and costs to usually produce a better, more profitable picture.  Then we will apply that revised, recast income statement to the multiples that we think are appropriate for the business to derive a value.  In a financially constrained environment we’ll stress test that value to see what if financeable.  Because at the end of the day what matters is how much debt and how much equity can profitably be employed to buy this business. 

Watch the full interview on valuing your company.

Posted by Larry Rogers.


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