How to Value a Business

You’ve spent years building a valuable company. You might even say it’s the cornerstone of your life. But unless you value it properly — and know how to help it achieve maximum value in the years leading up to your exit — you can easily end up leaving millions of dollars on the table when you decide to sell. Whether you are looking to grow your business for maximum value, to figure out the right time to sell, or to sell your business right away, TREP Advisors can help you realize the maximum value for the asset you’ve worked so hard to build.

Your Guide to Valuation

What do you think your company is worth? Three million? Ten million? Thirty million? There’s very little guidance on how to come up with that number. Most owners don’t even know where to begin. Because it’s such a challenge, many owners base their valuation on “guesstimates” or do not address the issue at all. Plug-and-play business valuators might generate a value number quickly, but they do not consider what your goals are for yourself, your employees, or the multitude of other factors that impact the worth of your business.  

So many factors must be considered to determine the true value of your business — things like your adjusted EBITDA, your business mix, the strategic value of a buyer match, your company’s level of self-management, your geographic location, market timing, your industry, your needs as an owner, and much more. Trying to get it right can be a confusing and an overwhelming process. Because of that, many owners greatly undervalue their companies when they sell or even put off dealing with it altogether until an unexpected event forces their hand. Either way, they can lose millions that they might have realized had they planned appropriately. The process of achieving the best value for your business is both a science and an art, and it should be done by experts who understand you, the business and all the factors that influence the value.

TREP Advisors has the experience and market insight to help you gain a complete understanding of your company’s value that is vital for future business transactions. We are experts in your industry and will set you up for success in the future without fail.

Vision, Values and Strategy Report

TREP Advisors has channeled our years of experience and market insights into a tool designed to help business owners realize optimal values for their most valuable assets. Our Vision, Values and Strategy (VVS) report — the first step in the TREP process — will give you a complete understanding of the realistic value of your company. After completing the report, business owners are often surprised to learn that their companies are worth several times more than they imagined and to realize the power of a lump sum of cash impacted over years of growth.

Even if you are not yet ready to pursue a transaction, the VVS report will give you key insights on how to set your business up to sell successfully — and for maximum value — in the future.  Most importantly, it shows an owner when the time will be correct based on all of the needs and factors in the equation.

Here are some of the key insights the VVS report provides:

  • A 360-degree review of your company, industry data and market drivers
  • A clear understanding of needs and options for management and employees
  • Strategies for execution with probabilities of success identified
  • Present-day cash analysis of holding your company versus selling

What's Next?

Don’t wait for an event to force you into having to make a rushed, ill-prepared decision regarding the fate of your business. Even if you don’t believe now is the right time to make a move, it’s very important to take the necessary steps to make sure you know what your business is worth now and what it might be worth later. Doing so will educate and empower you to make the correct decisions for your business now and in the next five years.

If you’re looking for an experienced team to help guide you through that process, TREP Advisors can help. We’ve been in your shoes, made the mistakes, and now we make it our mission to help educate and support other entrepreneurs/owners as they contemplate how to grow or sell their businesses. We will be happy to share references with you from other owners who have experienced the process to help you with your decision.

Let's Talk About Your Business!

Call now for a free, no-pressure consultation on the next steps you need to take to value your company and determine the right time to act.