Privately-held Companies


 
Privately-Held Companies
 
The process of determining the true value of a privately-held company in its entirety, or components thereof, can be quite complex and time consuming. We help our clients understand the process and provide insightful information that enables them to understand what drives the value of their business.

The value of a privately-held company, as opposed to stock in a public company, is usually unknown because there is no active market to ascertain or approximate value. To properly value a privately-held company, we acquire a thorough understanding of every aspect of the enterprise’s dynamics, including management’s capabilities, company strengths, weaknesses and vulnerabilities, the competitive environment, overall expectations for the marketplace and future economic prospects for the industry. All of these elements affect the risk of an ownership interest in a particular enterprise, and risk affects value.



Additionally, we analyze the financial health of the enterprise and assess its future profit potential. From this information, we select the most appropriate methodology from among the many utilized by the valuation industry and apply a series of calculations and formulas to arrive at an ultimate conclusion of value.