Business Sale

Valuation Substantiates Business Value

Family Members Align to Move Forward with Sale

Situation

This manufacturing business had been in the family since its launch in the 1950s. Over generations, the family members had hired an independent management team to run the company while the remaining family members served on the board.

The majority of shareholders sought to sell the company while one family member held out, having significantly different expectations of the firm’s value.

Two trusted advisors of the company introduced Lou Pereira, President of Merrimack Business Appraisers, to prepare an objective business valuation.

Merrimack Business Appraisers’ Approach

For this situation, the calculation of business value was important to assist the family members, especially the one individual, to see how and why the business value was determined. To develop the objective and thorough business valuation, Pereira completed a site visit, interviewed the President who had been hired to run the company and completed an evaluation of all the important aspects of valuating a manufacturer including, but not limited to, its facilities, location, and customer concentration.

The valuation presented the rationale and supporting reasons for the calculated value of the business.

Valuation Outcome

Merrimack Business Appraisers’ business valuations are thoroughly prepared to stand up to scrutiny, clearly presenting the ‘how’ and ‘why’ the valuation was determined. The final business appraisal report was delivered to the family members who all agreed that the determined value was reasonable, credible, and fair. With the valuation complete, the board members all agreed to sell the business and the manufacturer was sold at the valuation price.

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