Business valuation

Business valuation is a crucial process for determining the economic worth of a company. The financial aspect of valuing a business provides a clear understanding of a company's financial health and potential, allowing stakeholders and purchasers to make informed decisions.

One of the essential components of an accurate business valuation is the use of adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Adjusted EBITDA refines standard EBITDA by eliminating non-recurring, non-operational, or discretionary expenses, ensuring a more accurate reflection of the company's ongoing profitability. It allows for a consistent comparison across businesses, removes distortions caused by accounting practices or unusual events, and highlights the core earnings power of the company.

Having precise adjustments to EBITDA is vital because errors or inconsistencies could skew the valuation, potentially leading to misinformed decisions or financial risks for stakeholders. A well-executed valuation, supported by an accurate adjusted EBITDA, enhances trust and confidence in the company’s financial standing.

First name

Last name

1. Business Taxes (Trailing 3 Years)

Business Taxes (Trailing 3 Years) Upload business tax returns for the past three years. These documents provide insight into the company’s financial history and tax obligations.

2. Income Statements (Trailing 3 Years)

Upload income statements for the past three years. If possible, provide these in Excel format for easier analysis of revenue, expenses, and profitability trends.

(Excel Format Preferred)

3. Balance Sheets (Trailing 3 Years)

Upload balance sheets for the past three years. These will help assess the company's financial position, including assets, liabilities, and equity.

4. Approximate Value of FF&E (Furniture, Fixtures & Equipment)

Enter the estimated total value of your company’s furniture, fixtures, and equipment. This helps determine the asset-based value of your business.

5. Approximate Value of Inventory

Enter the estimated value of inventory, including raw materials, work-in-progress (WIP), and finished goods. This is essential for understanding the working capital requirements.

6. List of Known Adjustments to Cash Flow or EBITDA

Provide a list of any known adjustments to cash flow or EBITDA. This may include non-recurring expenses, owner compensation adjustments, or discretionary expenses that should be normalized for valuation purposes.

7. List of Owners and Ownership Percentages

List all business owners along with their respective ownership percentages. This is crucial for understanding the equity structure of the business.

8. List of Debtors and Amounts (Business-Related Only)

Provide a list of outstanding debts associated with the business, including debtor names and amounts. This information is necessary for assessing liabilities and overall financial health

Business valuation

CONTACT

Capstone M&A