Building Company Value

How We Can Help You

Company value must be looked at through the lens of the buyer as opposed to that of the seller. This is true in all types of transactions, not just third-party sales. Most succinctly, it comes down to two things:

  • First, is net profit or net cash flow. Most commonly, this number is represented by Earnings Before Interest Taxes Depreciation and Amortization, known as EBITDA. EBITDA is further adjusted by factors unique to the business to arrive at Adjusted EBITDA. 
  • Second, is the uncertainty of those cash flows/Adjusted EBITDA in the future. This uncertainty is manifested in the multiple of cash flow the buyer is willing to pay for the company. 

The BETS team coordinates with other advisors including the M&A team and the legal and accounting teams to make recommendations to increase the value/quality of the company using the I.M.G.O.O.D. Checklist™ as a foundation.

 

I – Increasing Cash Flow and Cash Flow Improvement Plan

M – Management Team Institutionalized – Human Capital

G – Growth Plan and Company Strategy Clearly Stated

O – Optimized Financial Statements – Financial Controls

O – Operational Processes Documented and Clearly Defined

D – Diversified Customer Base

 


 

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Brightworth helps you by understanding your ultimate goals for your business, family, philanthropy, and legacy. We then review options, create a clear strategy and plan to reach those goals, and partner with you over the long term in executing and monitoring the plan. Throughout this partnership, we can help you with a plan to get an optimized tax outcome, one that is customized to your objectives to include tax, charitable giving, and wealth transfer strategies as applicable. This lets you focus on what you’re best at, successfully managing your business and personal life.

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