Business Valuations for Mergers & Acquisitions

Whenever ownership of a closely held business changes hands, an objective third party should perform a business valuation. A valuation will help the seller determine the right selling price for the company and help the buyer make a competitive offer.
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Each party receives assurances from a business valuation: Sellers can have confidence that they’re not leaving money on the table, and buyers can be confident that they’re not overpaying for a business.

A business valuation is usually performed in the following scenarios:

M&A transactions may include entire or partial acquisitions as well as liquidations, divestitures, and recapitalizations. Companies with two or more divisions are sometimes spun off into separate corporations when a partial sale of the business is conducted or for estate tax or other reasons, such as family conflicts.

In a merger, both companies should generally be valued. Each company may choose to obtain its own business valuations. Meanwhile, the company being acquired is usually the only one that needs to be valued in an acquisition.

M&A transaction terms typically include stock, cash, notes, or some combination of these. Meanwhile, publicly traded companies often use unrestricted (or Rule 144) stock when acquiring closely held businesses.
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OP Business Valuations have performed business valuations for numerous M&A transactions. These include businesses of all sizes in a wide variety of different industries. Specifically, OP Business Valuations have performed transactional assistance and valuation-related services for companies in the services of professional, logistics, distribution, software development, agricultural, and food services industries.