Business valuation service New Jersey is a practice and a set of tasks that determine the monetary and market value of a company or a business. Valuation of a business is done for multiple reasons such as your need to sell your company due to retirement, divorce, health, reduced cash flow, etc. In all these cases, you need to provide the value of your business. Are you looking for business valuation services New Jersey? ThomasRoss Financial Group is here at your service! We also provide brilliant business start-up services New Jersey.     

What are the Primary Business Valuation Methods? 

The business valuation of a company or a business, when performed as a going concern, is mainly approached via the following methods:

•   Relative Valuation – Market Approach
•   Intrinsic Valuation – Discounted Cash Flow Approach     

Market Approach 

The market approach is a type of relative valuation, which is often used for the process of business valuation. It comprises of Comparable Analysis and Precedent Transactions. 

Discontinued Cash Flow Approach 

Discounted cash flow approach is a type of intrinsic valuation, which is an extremely elaborate and in-depth approach to the business valuation process. 

If you’re an owner of a startup, then reach out to us at ThomasRoss Financial Group for business start-up services New Jersey. You can also avail our services for Business Valuation Services New Jersey so that you’re aware of the worth of your business at all times. 

The Three Main Methods of Business Valuation 

1. Comparable Analysis 

This is a relative valuation method in which we evaluate the present worth of a company by comparing them to other similar companies. We look at trading multiples like P/E, EV/EBITDA, and/or other ratios. This method is a very common business valuation approach as it presents the current value and can be calculated rather easily. 

2. Precedent Transactions 

This is another relative valuation method in which we evaluate a comparison between a company and other recently sold companies of the same industry. These transaction values are essential for mergers and acquisitions transactions. However, this method is not used as often as comparable analysis, since the data can very quickly lose its value, as with time it may not continue to prevail as the current market value.  

This is why we suggest you avail our business valuation services New Jersey so that you can  always remain up-to-date with the current market value of your company. At ThomasRoss Financial Group, you can also opt for excellent business start-up services New Jersey. 

3. Discounted Cash Flow Analysis

This is a type of intrinsic valuation method in which we forecast a company’s unlevered cash flow and discount it back to today’s value. It requires the most substantial amount of assumption, analysis, and detail. The method often produces a result that is the most accurate valuation of a business. 

Business valuation is of utmost importance and shouldn’t be neglected or done by the owner himself, as the results may end up being biased in nature. Contact us to avail a team of professionals who will evaluate the accurate value of your company with total ease and at affordable prices! 

Mergers & Acquisitions (M&A) are described as the process of combining two companies for their economic betterment. This process involves business evaluation and is one of the most important aspects of the financial world. We, at ThomasRoss Financial Group, provide business valuation services New Jersey for different procedures like bank financing, mergers & acquisitions, and restructuring & insolvency. 

Why Opt for Our Business Valuation Services New Jersey? 

In terms of mergers and acquisitions, business valuation is incredibly important. When two companies decide to combine their operations together, they need to be able to provide an accurate representation of their business’s economic worth and current market value. Without the valuation, companies will not be able to decide the final market costs of consolidation. 

What is Mergers & Acquisitions? 

Mergers take place when two businesses of about the same size join their operations in order to form a larger company. This happens when both the businesses are in agreement that merging the companies would create a significant surge of sales and in turn, help them attain a higher market value. When two companies merge together, they essentially become equal partners and work together with a mutual understanding. 

Acquisitions take place typically between a larger company and a relatively smaller one. The larger company usually takes over the smaller company by buying a portion of the smaller company. In addition to this, the acquirer may absorb the company by buying their certain assets. 

How Do Mergers & Acquisitions Occur? 

• They occur by exchanging the shares for assets
• They occur by purchasing assets
• They occur by exchanging the shares of shares
• They occur by purchasing common shares 

What are the Different Types of Mergers & Acquisitions? 

Mergers & Acquisitions can take different forms, based on different aspects. 

The two main forms are:

• Merger through absorption
• Merger through consolidation 

The Three Types from the Economic Aspect: 

• Horizontal merger

       This occurs when both companies are in the same industry. 

• Vertical merger

       This occurs when both the companies are at different value chain or production stages.

• Conglomerate merger 

This occurs when both companies belong to two different industries.