BUSINESS VALUATION & ANALYSIS OF VALUE
Understanding the potential market value of a business is essential when making important financial, strategic, and ownership decisions. Allston Advisory Group provides preliminary, market-based valuation analysis to privately held companies, business owners, and shareholders seeking an informed estimate of their company’s value.
Through our Analysis of Value (AofV) service, we combine comprehensive financial analysis, industry benchmarking, and relevant market transaction data to develop an estimated market value range. Drawing on extensive M&A transaction experience and financial expertise, our approach reflects how prospective buyers and investors evaluate businesses in the lower middle market.
Whether considering a future sale, evaluating an ownership transition, or exploring opportunities for growth, our Analysis of Value provides meaningful financial insight to support informed decision-making.
OUR ANALYSIS OF VALUE SERVICES
Allston Advisory Group provides market-based Analyses of Value for a variety of business and ownership considerations, including:
- Mergers & Acquisitions: Establishing estimated market value ranges to support transaction planning, pricing expectations, and negotiations.
- Management Buyouts (MBOs): Providing market-based value estimates to assist with ownership transitions involving existing management teams.
- Shareholder and Partner Buyouts: Evaluating business value to support negotiations involving shareholder exits and ownership transfers.
- Minority Interest Transactions: Assessing estimated market value in connection with minority investments, ownership transfers, and recapitalizations.
- Exit and Succession Planning: Helping business owners understand current market value and evaluate future ownership transition strategies.
- Strategic Business Planning: Providing financial analysis and market-based value estimates to help owners evaluate growth opportunities and long-term business objectives.
OUR ANALYSIS OF VALUE APPROACH
Estimating the market value of a business requires more than applying a multiple to earnings. It involves understanding the company’s financial performance, operating characteristics, industry dynamics, and the considerations that influence how prospective buyers assess value.
Allston’s Analysis of Value employs a market-based approach supported by financial analysis and relevant transaction data. Our process generally includes:
- Financial Analysis: Reviewing historical and projected financial performance, revenue trends, profitability, and the company’s overall financial condition.
- Earnings Normalization: Identifying nonrecurring, discretionary, and other adjustments to develop a clearer understanding of sustainable earnings.
- Industry Benchmarking: Comparing key financial metrics, profitability, and operating performance against relevant industry norms.
- Market and Transaction Analysis: Evaluating comparable business transactions, market multiples, and prevailing industry conditions.
- Market-Based Value Estimate: Developing an estimated market value range based on the company’s financial characteristics and relevant market evidence.
Upon completion, clients receive a concise written report summarizing our findings, including the estimated market value range and significant financial observations. We then meet with the business owner to review the analysis, discuss the company’s financial and market position, and evaluate potential next steps.
ANALYSIS OF VALUE AND EXIT READINESS
Understanding a company’s estimated market value is an important first step in preparing for a future sale. Equally important is identifying risks that could adversely affect that value or the company’s salability.
For this reason, Allston may perform an Analysis of Value in conjunction with an Exit Readiness Assessment (ERA). While the AoV provides an estimated market value range, the ERA identifies financial, operational, organizational, and strategic risks that could negatively influence buyer interest, transaction terms, or the likelihood of a successful sale.
Together, these services help business owners understand their company’s current position and establish a practical framework for reducing risk, enhancing value, and preparing for a future ownership transition.
PROFESSIONAL EXPERTISE AND EXPERIENCE
Allston Advisory Group’s Analysis of Value services are supported by professionals with backgrounds in accounting, financial analysis, and mergers and acquisitions, including professional credentials and affiliations with the National Association of Certified Valuators and Analysts (NACVA) and the American Institute of Certified Public Accountants (AICPA).
Our transaction experience provides insight into how strategic buyers, financial buyers, and well-capitalized individual investors evaluate acquisition opportunities. By combining this market perspective with detailed financial analysis, we provide practical, well-supported value estimates tailored to the circumstances and objectives of each engagement.
WHY CHOOSE ALLSTON ADVISORY GROUP
An informed estimate of market value requires sound financial analysis, relevant transaction data, and an understanding of how businesses are evaluated in the marketplace.
Allston Advisory Group combines these capabilities with direct M&A transaction experience to provide business owners with meaningful financial insight and realistic value expectations. Our approach emphasizes market evidence, financial performance, and the considerations that influence actual acquisition decisions.
Beyond estimating value, we help clients interpret the findings, evaluate strategic alternatives, and determine whether to pursue a transaction or focus on initiatives that may strengthen the business and enhance its future value.
BEGIN A CONFIDENTIAL CONVERSATION
Whether you are considering the sale of your business in the near term or several years down the road, evaluating an ownership transition, or simply seeking a better understanding of your company’s potential market value, Allston Advisory Group provides the financial insight and strategic guidance to help you plan for the future.
Contact Allston Advisory Group to discuss how an Analysis of Value can help you understand your company’s estimated market value and evaluate your next steps.
