Valuation Methodologies

Most perform valuations and business appraisals by relying on one or two methodologies, which often result in a spreadsheet filled with unchallenged numbers and projections. Often these evaluations are meaningless, as they don’t consider the company's critical success factors, current and future revenue/cost drivers, industry benchmarks and best practices. Often times the valuator fails to take into account the purpose of the valuation undertaken.

At the end of the day, a business is only worth what someone is willing to pay or loan against. There is no such thing as a one size fits all template in determining a range of value for any particular business. Sage takes pride in understanding many evaluation approaches and choosing the best approach to achieve the clients’ objectives while providing the most meaningful and relevant information to our client.

These are merely a few of Sage’s Valuation Methodologies:

• Market Approach
  
• Discretionary Earnings (Multiple of Cash Flow)
  
• Asset-Based Methodologies
  
• Capitalized Earnings (Rate of Return)
  
• Excess Earnings
  
• Return on Employee / Partner
  
• Cost to Replicate/Duplicate

"A business is only worth what someone is willing to pay ..."