The essence of business valuations

The essence of business valuations

June 11, 2020

What’s a business valuation and when do you need one?
Congratulations! As a business owner, your most valuable asset is your business. So if we ask you today “What’s your business’ worth?” – would you know the answer? Has its value changed these past months due to the Corona pandemic? If a business owner needs to find out what the business is worth, determining its value isn’t as simple as looking up a stock price. For that, a business valuation is needed and at cfg we have the expertise in-house to provide you with certified valuations.

What’s a business valuation?
In plain clear and simple words, a business valuation is a formal process to determine the value of a business. Getting a business valuation done, can be a sobering experience; a business valuation is one part art and one part science. It relies on the professional judgment of an analyst who weighs the nature of the business, its financial performance, local and national economic conditions, values of assets and related liabilities, plus any unique know-how or proprietary technology to arrive at an estimate of the value of the business.  At cfg, our approach is crystal clear: what you might hope for, means little to us. What you get is the truth, the whole truth and some more truth. Cfg valuation reports are based on the National Association of Certified Valuators and Analysts (NACVA) standards, they are independent and unbiased.

When do you need a business valuation?
Situations in which a business valuation may be needed are for instance:

  • Change in business ownership as part of succession planning or retirement
  • A merger or sale to another entity
  • A new shareholder or partner comes on board
  • Raising investment capital
  • Going through a divorce
  • Estate tax purposes.

Whatever the reason, whether happy or sad, you are best served by an experienced professional to perform the valuation. A valuation report adds credibility to any proposed transition. Valuations performed under NACVA standards are reliable and defensible, should the matter appear before a court.

Why pay for a valuation service?
Because every business is unique, there are no rule of thumb methods that will result in a simple-to- calculate value. Cfg valuation specialists carefully consider situational, regional and economic dependencies while gathering all relevant information. Cfg involves all key stakeholders in the valuation process, which makes acceptance of the final report more likely. Furthermore, objections or differences of opinion are discussed beforehand and will be taken into account when reaching the final conclusion of value. A reliable business valuation plays a critical and key role in your financial future. Similar to choosing any specialist service provider, it is highly recommended to seek out a certified professional such as cfg with adequate and relevant professional experience.

Why work with cfg?
Cfg specializes in business valuations in accordance with the standards of the United States’ National Association of Certified Valuators and Analysts (NACVA). We are engaged by courts, lawyers, tax advisers, accountants, shareholders or business owners. Our valuations are used in merger & acquisition situations and dispute resolutions such as marital settlements, buy-out of shareholders or inheritances. Cfg also specializes in financial investigations which are also in accordance with NACVA standards, primarily in the areas of commercial damages and lost profits investigations.

About Cfg
Cfg was founded in 2012 by Bharat Bhojwani and Walter Blijleven, two experienced entrepreneurial, international bankers and corporate finance experts. Each of them has held senior positions at institutions in the areas of corporate finance, international trust, mergers & acquisitions (M&A) and private equity. Cfg has a strong track record of results throughout the Caribbean region and has successfully served a variety of clients in diverse industry segments.

Reliable  |  Realistic  | Reachable
Cfg – Elevate to Value

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