Lending Institutions

Your client has located a business, conferred with the seller and agreed on a price. He/she sees nothing more than the opportunity. While this mentality is the cornerstone of economic growth and industry it is your pragmatic approach to risk management that causes you to look deeper for the essentials. Is the business really worth the agreed price? Will it pay my client a living wage, service the debt and give a reasonable return on investment?

Sometimes a loan package just falls into place. More often than not there are a myriad of questions and concerns to overcome. The new standard operating procedures 50-10(5) for the SBA effective June, 15th 2008 states all businesses acquisition loans over $350K must undergo a third party Business Valuation from a qualified source.

While our primary function is managing the sale of small to mid-market companies there exists a need of evaluation services for our local lending institutions. Upon completion and receipt of the provided information package we can present your lending institution with an experienced Third Party Opinion of Value for any going concern within 72 hours. This carefully prepared and packaged Business Evaluation will have extensive information that will justify and support the conclusions. These conclusions include but are not limited to:

• A reasonable range of value for the target company.
• Explanation of the 13 different methods used to establish value.
• Sanity check including post sale cash flow.
• Industry comparables

An engagement with our firm will help you give clearer insight to your client regarding the value of the business they have chosen. From a lending perspective our evaluation will help you reduce your exposure by giving you a visual, written argument for maximum seller financing.

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