Most Probable Selling Price

If we sell our business today what could we get for it?

Where do we need to be to accomplish our personal goals?

A tool for the determination of value, the Most Probable Selling Price as prepared by Alamo Corporate Group, establishes the value for your company from the viewpoint of a financial buyer.  It provides insight into your business.  We will help you to be aware of options and to identify your needs and goals.  We can then set our sights to achieve the exit strategies to fulfill your requirements for an optimum deal.  The supportable information offered within this report will present your company to your best advantage.  This is not Fair Market Value, but the highest possible price based on your desired structure and the current lending environment.

This Most Probable Selling Price report should not be confused with a formal business appraisal.  Our Most Probable Selling Price report is based on recast earning, establishing the FMV of the fixed assets to be transferred, a test of comparable sales of similar size companies from the same industry and most importantly an analysis of what banks will lend on the company.  The proprietary software that generates this report gives a defensible starting point in either pricing your company or identifying areas that need improvement to reach a certain exit price.  Often this report leads us to recommend you have a formal business valuation prepared by your CPA or a third party valuation company.

Should we recommend a full evaluation, the following FUNDAMENTAL METHODS are then utilized to develop the FAIR MARKET VALUE of your company.  Only the methods considered to be relevant for the currently designated study are used.  Methods are listed as follows:

  • Recast Earnings
  • Adjusted Book Value
  • Capitalized Earnings Value
  • Capitalization of Profits Value
  • Capitalization of Excess Profits Value
  • Net Worth + Excess Earnings Value
  • Adjusted Net Worth + Excess Earnings Value
  • Discretionary Cash Flow Value
  • Discounted Cash Flow Value
  • Discounted Value Future Earnings

WHY COMPANIES ARE VALUED:

CORPORATE PLANNING

  • Acquisitions or Sale Management Buyouts
  • Buy-Sell Agreements
  • Employee Stock Ownership Plans
  • Mergers
  • Divestitures
  • Restructuring
  • Recapitalization
  • Reorganization
  • IRS Requirements
  • Financial Packaging

ESTATE PLANNING

  • Stock Redemptions
  • Estate and Gift Tax
  • Key Man Life
  • Key Man Disability
  • Tax Free Transfer of Assets

LITIGATION

  • Divorce Actions
  • Stockholder Disputes

Who needs Business Valuations?

  • Business Owners
  • Stakeholders
  • Banks
  • Buyers and Sellers of Businesses

Depending on what the valuation is needed for the type of report may vary greatly.  Third party valuations are both expensive and necessary in many cases. For more information please contact us.