As an owner of (or an advisor to) a closely held business, you may have commissioned valuations for various more or less immediate needs – such as ESOP (Employee Stock Option Programs), shareholder disputes, and the like. Those are certainly valid reasons to obtain a valuation. Yet, beyond the near term, the most compelling reason for a valuation is a more fundamental one: A thorough and objective valuation is one of the most powerful diagnostic tools that there is, identifying those areas in your accounting/record-keeping methods, contingency planning, HR policies, and even blind spots in your market positioning that may be impacting your valuation negatively.
In a sense, like the best doctors, the professionals at Value Guards provide effective preventative care for the ultimate health metric of your business – its value. We leverage the valuation as a diagnostic tool. After all, what better way is there to assess a business so thoroughly and objectively? Very often, even in relatively large privately-held companies, there just doesn’t seem to be much time for anything other than addressing the day-to-day issues. So, very often, aside from the internal value-draggers that are identified, we have found that the business is operating in a vacuum with respect to emerging trends in the industry and other external factors. Addressing these blind spots not only helps optimize value but, in some instances, can be a matter of survival.
In short, our diagnostic valuation identifies unnecessary losses or “leaks” in the value of your business. Then, working in tandem with you, we proceed to remedy those issues. That way, when it comes time to sell—whether that’s one, three, or five+ years down the road – your business will be positioned for top dollar. Just as a successful medical treatment is impossible without a thorough diagnostic, effective business value optimization is contingent upon a thorough valuation at the outset of the process. (If so desired, we also provide standalone business and patent valuations.)