Business Valuation

tmx_businessvaluationBuilding an effective business model, whether it’s to evaluate a transaction, a new market opportunity or for other strategic purposes, is a complex and difficult task. Business valuation in its broadest sense is critical to the commercial success of most businesses. The need for transparent and robust valuations to support corporate transactions and to meet regulatory and accounting requirements has increased. But justifying the value of assets and liabilities has grown more complex and critical for most businesses. The constituent parts of goodwill and intangible assets nearly always represent the key assets in any business. Valuing all or part of a business requires understanding and analysis of a variety of complex factors. These include both detailed technical knowledge of value drivers and in-depth industry knowledge.

Providing the Knowledge Needed to Make Value-Creating Decisions

Thought Metrix provides the knowledge executives need to make value-creating decisions. Our valuation specialists can assist businesses to achieve an in-depth understanding of the value of each business or asset in a transaction. Our leading-edge technical knowledge combined with our in-depth industry knowledge allows us to understand the specific factors driving each individual deal. Our experienced professionals bring excellence in accounting, taxation, and financial due diligence to provide you with valuation advice for a multitude of purposes. Our business modelling professionals can help you carry out the model review, model support and model-build activities you need to make key decisions and improve your strategic outcomes.

Too often, if a deal looks interesting after a preliminary review, a valuation model is constructed and financial and legal due diligence starts. This approach delivers mixed results at best. If an acquisition team is reacting rather than being proactive, it’s likely to pursue deals with prices below the valuation model, deals with limited up side and big downside, and deals whose numbers can be massaged to meet corporate hurdle rates. The team may turn down transactions that appear too expensive but are really not in terms of their long-term strategic benefits. It will also fail to uncover opportunities it might have turned up on its own if it had followed a strategic road map.

In contrast, seasoned deal makers know their basis of competition and are always thinking about the kinds of deals they should be pursuing. Their teams work with individuals close to the ground in line organizations to create a pipeline of priority targets, each with a customized investment thesis. They cultivate a relationship with each target so that they can quickly get to the table, sometimes before the For Sale sign goes up.

Our business valuation team performs valuations of business entities, intellectual property, intangible assets, common and preferred stock and other securities along with partnership interests, private debt instruments, options, warrants, and other derivative products. These services are provided to assist clients with mergers, acquisitions and dispositions; taxation planning and compliance; financial reporting; bankruptcy and reorganization; litigation and dispute resolution; and strategic planning.

Consistent with our goal of becoming a trusted business advisor, we believe that the engagement consultation process needs to actively involve our clients. We bring a team of seasoned industry and technical specialists who are committed to providing responsive service.

We provide valuation services to assist in the following areas:

  • Business Combinations
  • Business Financial Modeling
  • Consolidation of Variable Interest Entities
  • International Tax
  • Financial Instrument Valuation
  • Goodwill and Other Intangible Assets
  • Shareholder Value Optimization