Defending Value

With Kevin Valley, Chartered Business Valuator

"Unless a valuation can withstand intense scrutiny - it is just a number."

Defensibility is everything.

Whether you are seeking exit, raise capital, evaluate an investment opportunity, negotiate deal terms, or pass a financial audit - a defensible valuation is your starting point.  

For over 12 years, I've conducted business valuations and evaluated companies for debt & equity financing.

During this time, one thing has remained consistent - the number we generate is secondary to the analysis used to back it up.

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Why a Defensible Valuation?

Raise Capital | Close Deals | Satisfy Auditors.

Valuation is the art and science of determining the worth of an asset or entity. The goal is to determine the highest price the entity could fetch in the open market assuming reasonably informed parties who are under no pressure to transact.

There are many reasons to commission a business valuation.  These may include raising capital to scale or sell a business,  financial or tax audit purposes, or to determine legal settlements (e.g. in divorce cases).

A valuation report provides the starting point of a negotiation between a business owner and investors, auditors, or acquirers as it provides a defence for the worth of the company.

The Defensible Valuation Framework

A company's valuation can be defended through detailed analysis in the following key areas:

Market Environment

Does the company have an established competitive advantage?

Management

Can the company operate without the CEO for 8 weeks with little to no disruption?

Cash Flows

Can the company scale operations while keeping staff and overhead costs stable?

Cost of Capital

Does the company maintain strong and cordial relationships with its existing capital providers?

Financials

Can the company's financial statements be relied upon to make investment decisions?

Strategy

Has the company prepared an up-to-date business plan that incorporates current industry trends and outlook?

Systems

Does the company use I.T. operational monitoring such as ERP (enterprise resource planning) systems to manage back-office operations?

Defensibility is Everything

The benefits of a defensible valuation:

> Clear Value.
> Facilitates easier internal decision making.
> Stronger negotations as value is justifiable to all parties.
> Trusted by Lawyers and Accountants.
> Credibility and higher deal-closing rates.

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Testimonial:

Otis Murray

Manager, Investment Research at RBC

""

Kevin is an excellent business valuation expert - private and public companies. In addition, he is also an experienced financial expert. He is congenial, energetic, enthusiastic and detailed oriented.

Testimonial:

Melanie Russell

President, Kalex Valuations Inc.

""

Without reservation, I would recommend Kevin as a competent advisor to any client.

HOW IT WORKS

1

Initial Meeting or Call

I employ a collaborative approach to determine assignment context, valuator role, deadlines, business interest for valuation, company info and fees for the project.

2

Engagement Letter

I will then prepare and issue an engagement letter summarizing our understanding of the terms of the engagement. This will form the contract by which the valuation work will be performed.

3

Qualitative and Quantitative Analysis

With a singular approach, I’ll identify that which influences the return, risk & growth factors of your business. This will be used to produce a detailed valuation report on your company.

4

Review of Draft & Submission of Final Report

After you review the draft report, you should confirm agreement with the valuation approach used. The final report will be submitted.
Now, you’re good to go!

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