There are four primary ways middle-market companies are valued:

(1) comparable companies analysis, which uses stock trading prices for public companies discounted for the size of the selling company;

(2) discount cash flow (DCF) analysis based on projections,

(3) asset-based valuation based on book-value, and

(4) precedent transactions for the multiple of earnings method

Once engaged, Sierra Pacific Partners conducts a market study using proprietary databases to assess the company’s value, determine active buyers in the industry, and talk to those buyers to uncover how they view and weigh various value drivers.

As with most things in life, the best time to sell your business is when you don’t have to. Being forced to sell at the wrong time means not realizing the best purchase price, while selling on your own timing can set you up for a retirement enjoying the things you love with the people you love.