Situation
The owner of a small medical practice wanted to retire and had discussed selling the business to an employee. As a nationally recognized expert in developing highly defensible business valuations for small and mid-sized privately held companies, Merrimack Business Appraisers President Lou Pereira was retained to determine the fair market value of the business and advise the parties on an equitable deal structure.
Merrimack Business Appraisers’ Approach
Pereira conducted a methodical and through detailed qualitative and quantitative analysis of the practice, applying an income approach and market approach. The income approach used a discounted cash flow analysis that fully explained and substantiated the value conclusion. Use of Merrimack for an independent business appraisal was important to assure all related family members of both the buyer and seller that a fair price was paid and received for the business.
Valuation Outcome
This equitable deal structure facilitated the sale of the business.
