Middle Market Corporate Valuations

Many business owners ask, “What is my company worth?” Before committing to a sale, merger, or an investment, owners want to establish a reasonable range of corporate valuation. We suggest our “Valuation Snapshot” as a cost-effective answer to the question. Rather than generate a large boiler plate document containing mostly quantitative financial analysis, we analyze two sets of very specific financial metrics.

First, we look at public company comparables of same or similar companies. Second, we look at comparable documented financial transactions for both public and private companies to establish a reasonable range of valuation. Finally, we apply the firm’s subjective judgments to these two sets of analysis about the particulars of our client company operations, markets, and operating history.

We share all the data we draw upon, as well as our assumptions and adjustments, in a simple spreadsheet form, accompanied by simple explanatory text. The entire document is about ten pages long and is a low cost yet very effective way of establishing a range of corporate value.

Middle Market Fairness Opinions

FOCUS provides fairness opinions for multiple kinds of transactions. A fairness opinion is the professional opinion of an investment bank regarding the fairness of a price offering in a merger, takeover, divestiture or asset sale. FOCUS delivers fairness opinions in both public and private transactions.

A fairness opinion is a black and white finding stating that the transition is either fair or unfair; there is no gray shading in between. Before rendering such an opinion, the investment bank examines price, terms, legality and potential conflicts relative to similar deals.  Fairness opinions help protect the Board of Directors from outside legal “second guessing” their transaction decision-making. It is often referred to as an “insurance policy” for the Directors.