How Does Valuation Work?

Acquiring a company valuation is typically the first step when considering selling your business. Whether you specialize in elevator supply or elevator service, a valuation can give you an objective and informed assessment of whether it’s a good time to sell and what steps you can take to increase the value of your company.

Below is a brief explanation of what to expect when you request a company valuation from an M&A advisor:

It starts with your financials

Including a detailed analysis of your revenue, growth prospects and overall profitability.

Buyers need to understand the stand-alone profitability of the business,

as well as what opportunities may come from integrating your business into one of their own, and what profits and cash flow might look like after that integration.

Buyers will explore and test the integrity of your business

This includes an audit of your management team and their capabilities, the processes you have in place, and how well the business will perform if they acquire and operate your company.

If you own an elevator service business, maintenance revenue is just the start

While this is the key driver of your valuation, there are many other factors contributing to what a buyer will offer as a purchase price.

LEARN THE KEY BUSINESS ELEMENTS THAT POTENTIAL BUYERS LOOK FOR

Valuations can be difficult on your own

An experienced M&A advisor can guide you through the process, help you put your best foot forward, and find the best potential buyer. Even better if they specialize in elevator suppliers and elevator service companies like yourself.

For over 30 years, Lift Business Advisors has helped independent elevator companies navigate the selling process with confidence and peace of mind.

Contact us for a free consultation and see what a valuation report from our team can do for you. Our proprietary process identifies your current value as well as actions you can implement to add to your profits and your eventual selling price when you eventually exit the business.