Whether you are looking to sell your business or simply want to know what your current value is for future planning and growth potential, business valuation is a necessary step to financial health. However, gaining a complete understanding of the market in order to get an accurate and precise valuation of your own organization can be complex and tedious. Most healthcare professionals don’t have the time or inclination to manage the load alone, particularly when the time used for the valuation process can take energy away from your patients.
Understanding Business Valuation
Business valuation is a complex system that involves a variety of factors to produce an accurate estimate. C4 Consulting understands those complexities and will painstakingly work with you to come up with a precise valuation that will assist you in moving your business forward, no matter what that might look like. When we go to market, we will not just place a price on your company, instead, we want to ensure that we understand all the qualitative and quantitative factors affecting the value of your business. We specialize in defining fair market worth for clients or prospective buyers, using technical methodologies to ensure a comprehensive and accurate perspective of business.
When working through your valuation, we might use any or all of the following:
Discounted Cash Flow
Also referred to as DCF, this method begins with projections of future cash flow, and then discounts those projections to determine a current value. Potential buyers can then look at whether the numbers obtained through the DCF process are higher than the current cost of the investment. If so, the investment is likely a positive opportunity.
First Chicago Method
Three different projections are included in the First Chicago method; the best, worst, and expected scenarios. The scenarios are each given a probability and monetary value before they are averaged and given a final value. Many financial gurus believe this is the most accurate method of valuation for businesses in the very early stages.
Risk-Adjusted Discount Rate
This methodology is designed to compare risk and return. It is based on the present value of the cash flow, which is then discounted according to risk to determine the true value of the investment. A variety of factors may be used to determine the risk of the investment, including the location of the business, projected liquidity, and the probability of default from other parties.
Allow C4 Consulting to be the experts you turn to for the valuation of your business, freeing up your time for the important task of running your operation and caring for your patients. We can offer you information on general industry trends affecting your business value and help find relevant growth strategies for the specific financial trajectory you want to develop. We will also take time to describe key industry events and acquisitions affecting the entire market. This service can be uniquely tailored into funding or client representation, depending on your preferences.