By determining your company’s worth, the Valuation Practice of our subsidiary, MFA Cornerstone Consulting, can help you determine a starting point for negotiating with potential buyers. Drawing on our extensive, in-house experience, we can also provide you with advice on the financial viability of possible transactions, as well as the advantages and disadvantages of adopting a certain deal structure. We have the knowledge and the expertise to go beyond the valuation exercise and provide you with a comprehensive overview of factors that drive your value up or down. Our assessments bring many topics into light, and can often identify changes you can make now to reach your goals.
Agreements among partners or business owners as to who can buy what share of ownership from whom often sit untouched for decades. When a shareholder passes away or when another event triggers the use of this document, interpreting its formula and applying it to the company’s current situation can be complicated. Our valuators can ascertain the meaning of existing buy-sell agreements and/or conduct an updated valuation to support their execution. We can also consult with you to help create a new agreement, providing not only the valuation itself, but also establishing a rock-solid formula and clear definitions that will help avoid any confusion when the document is referenced in the future.
Adopting an ESOP can yield numerous benefits for closely held companies. In particular, this type of transition can be a boon for owners who are seeking a practical exit strategy, or for CFOs who are looking for a source of funding for future growth. Ultimately, this arrangement may also enhance the morale and financial security of employees. A valuation from MFA can get the ball rolling, and with our experienced team on your side, you will soon realize the many advantages of a successful employee ownership program. In subsequent years, as participation increases, we can also provide updated assessments to determine the equity’s current value and keep you in compliance.
To learn more, download our Valuation brochure.