HafeziCapital’s Business Valuation services allow companies to understand the underlying value of the organization. Valuations are necessary are generally a necessity for Corporations bringing on new stockholders, annual corporate reviews, or structuring an exit. Business Valuation analysis allows business owners to understand what the approximate value of the organization is at the time of the valuation, and develop the necessary steps to increase the value of the firm.
How does Business Valuation work?
Valuation are based on two key elements, namely the current profits of an organization and the risks associated with achieving those profits in years to come as the cash flows increase. However, Business Valuation must take into account the existing assets, the industry trends within the product/service in the market, and the multiples that define your specific industry. However, more and more businesses have un-tangible assets, which are becoming critical to business operations. Un-tangible assets include but are not limited to website/application traffic, brand recognition, client list, user engagement, and name recognition that need to be taken into account when reviewing your organization’s value. HafeziCapital’s vast expertise in researching, financial modeling, and financial forecasting allows for an accurate and reliable valuation.
Our experience in the field of capital raising and Mergers and Acquisitions provides us with a unique understanding in ensuring that we use the correct methods and reliable estimates to reach our business valuation analysis. Our Business Valuation estimates represent the reasonable market price at the time of the valuation. It is critical to understand that given economic conditions, market demands, and sector growth, business valuations may increase or decrease. Thus, understanding the key economic and industry indicators are critical in obtaining the correct Business Valuation at the time of the analysis.
Different Uses of Valuation
Business Valuation: HafeziCapital has worked with a large number of businesses in various industries and understands how to value each firm based on its specific industry. Our business valuations have been used for Bank Financing, Determining Acquisition Price and understanding a fair market value for the Company when raising money or selling the Company.
Start-up Valuation: HafeziCapital has worked with a very large number of start-ups in defining the value of the organization based on Intellectual Property, Cashflow, and Customer base. Start-up Valuation is used by Entrepreneurs and Investors as a means to understand the underlying value of the firm and at what valuation they should obtain equity stakes.
Mergers & Acquisition Valuation: HafeziCapital provides business valuations for organizations that are undergoing a merger, acquisition or a type of liquidity event. HafeziCapital helps organizations on both the buy or the sell side, understand the value of the organization based on Asset, Market, or Income approach. This Business Valuation can help obtain third-party validation for a Merger or Acquisition. On the buy-side, this decreased the opportunity to over-paying for a firm. On the sell side, this ensures that you obtain minimal market value for the firm.
Real Estate Investment Trusts (REIT’s) Valuation: HafeziCapital’s team can analyze the valuation of REITs based on Market to Market or Market to Model structures. This allows the organization that owns assets to obtain a third party valuation model to ensure that the assets are marked accordingly.
Software as a Service (SaaS) Valuation: Software as a Service Valuation pricing is based on different variables to that of general valuation models. HafeziCapital has worked with a number of SaaS companies to obtain a defendable market value and has become a subject matter expert.
Medical and Dental Practice Valuation: HafeziCapital’s Valuation’s team has worked with a number of Medical and Dental Practices to understand the practice value to sell the company to undertake a Merger between a number of practices and doctors. The Practice Valuation is undertaken with a deep understanding of what the current market value of the organization is. Our detailed model looks at recent transactions, cash flows, assets, customer base, and similar practices that have sold within the past few years. HafeziCapital’s valuations have been used to obtain Practice Financing, and to justify the asking price of a practice.
Annual Business Valuation: HafeziCapital works with Partner’s and Stockholders to update the business valuation of the firm on an annual basis, thus ensuring that partners can access the valuation of the firm and the future prospect of an exit.