Touchstone Value Analysis
A Powerful Tool for Business Avaluation and Planning
We understand that there are many situations in which a business owner and their advisors may need to know what a business is worth (and why) as well as what opportunities may exist to increase the market value. When trying to make informed decisions regarding operational changes, capital investments, or an exit strategy, it is critical for an owner to understand the factors driving the value of their particular business as well as how it compares to others in the same industry. We created our Touchstone Value Analysis to offer owners and advisors a valuable and cost effective tool for business assessment and planning.
Our Touchstone Value Analysis is developed using the following process:
1) We research and compile up to date benchmark data on the industry in which the business operates. We can then compare the subject company's performance against industry norms. Using this information, owners can pinpoint areas for improvement as well as identify areas where the business may be outperforming the competition.
2) Next we analyze the non-financial factors that determine the goodwill value of the business. Goodwill is a huge component of business value but is all too often ignored until the owner is ready to sell. We use our proprietary system to clearly and comprehensively evaluate the factors influencing goodwill and determine specific opportunities to increase the value and marketability of the business.
3) The final step is a calculation of the Most Probable Selling Price based on a review of the financial statements as well as the information gathered in the first two steps. The methods used in calculating the likely value are the Multiple of Earnings, Buyer's ROI Test, and Market Multiples methods. The report includes an explanation of each approach as well as the recast financial statements with notes on all adjustments made to the financial statements.
Some reasons for obtaining a Touchstone Value Analysis report:
- Exit/Succession planning
- Considering a possible sale of the business
- Identifying areas for improvement
- Considering further investment in the business
- Financial planning
- As part of a periodic “health check” of the business
Turnaround Time: 5-10 business days once all information has been collected