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Business Valuations

Valuing a business is an art, not a science!

Your valuation experts must be experienced, especially in business transactions, when you are selling or buying a business.  For over 30 years our valuation analysts have conducted business valuations in a wide variety of industries and company sizes. They have earned multiple credentials related to accounting (CPA), business valuations (ABV, ASA, BV/IA), business appraisal reviews (ABAR), mergers and acquisitions (CM&AA) and as a business counselor (MCBC).

Our analysts have conducted an impressive number of valuations…over 13,000!  Although the majority of the valuations performed for our clients at Kingsbridge Capital Partners are performed for the purpose of mergers and acquisitions, our analysts have also performed valuations for institutional financing, divorces, partnership buy-outs, gift and estate planning, corporate restructuring and exit planning.

One of the most important steps in a business valuation an analyst can conduct is a price justification analysis. It's also referred to as a "sanity test."   It is simply a financial analysis of the pricing and terms of an acquisition by a hypothetical buyer (based upon normal industry deal terms and current economic and capital market conditions). A "sanity test" determines whether the seller's discretionary cash flow is sufficient to pay for the following:

  • Projected debt service and debt service cushion;
  • Fair replacement salary for the new business owner(s);
  • Capital expenditures or deferred repairs and maintenance, and;
  • A reasonable return on investment.