Business Valuation

McKenzie & Associates business valuation team serves private and public companies across the Americas. Our professionals can assist with a wide range of valuation services from corporate advisory to bankruptcy.

Business valuation is both an art and science that can be impacted by a multitude of factors such as the industry, historical financials, financial projections, and the management team, amongst others. Additionally, the complexity and nuances of each company, need to be scrutinized and understood before attaining a marketable value. These complexities, teamed with our team’s capital markets capacity, are what sets us apart. We provide valuations utilizing values calculated not only from the theoretical approaches but also from our own experience as capital markets experts. At the core of our capacity lies a deep understanding of what creates valuable companies.

Understanding and Measuring Value

Business Valuation requires a solid grasp of both how value has been in the past and how it could continue into the future. The overarching foundation is to understand how market multiples, cost of capital, asset base, and invested capital intertwine to determine the marketable value of a business. The process of value creation does not stem from a single source of funds but is a mixture of understanding where value is derived from, the industry trends, the company’s strategic positioning, and management’s ability to execute. Understanding this process is essential to provide any valuation that reflects the business’s marketable value.

The approaches to business valuation are simple, yet the execution is extremely complicated. As professionals, we look at the income the entity produces, review market transactions, and understand the asset base to look at the holistic value of the business. While each valuation methodology has its benefits, it also has drawbacks, hence a keen insight into each methodology is essential to derive value. While measuring value can always be expressed as a simple multiple, the path to simplicity in valuation is full of complicated roads.