NOT ANOTHER FLY-BY-NIGHT “VALUATION,” BUT AN ACCURATE PURCHASE PRICE AND VISION INTO YOUR COMPANY THROUGH THE EYES OF A BUYER THAT WOULD BE ATTRACTED TO YOUR BUSINESS.


HOW MUCH WOULD SOMEONE ACTUALLY PAY (AND HOW WOULD THEY PAY) FOR YOUR IT SERVICES BUSINESS AS IT IS TODAY? IT’S NOT JUST A MATH PROBLEM…

 

It’s the biggest question out there in the industry today. And to be completely frank, it’s got the most BS floating around to “help” you answer it that supplies a daily dose of painful apples to pineapples comparisons. Multiple of this and that galore that are, at best, back of the napkin rules of thumb if all the stars align… which they rarely ever do. If you don’t adhere to every detail, these rules of thumb just plain don’t apply and they are often from the mouths of sell-side people, not buyers and their M&A experts that are making the deals happen.

At Cogent, we work hard every day to let people know what the truth is. That truth is boiled down to the famous adage; your company is only worth what a buyer is willing pay for it. But we can do more than just talk about it in theory. We can show it to you in a personalized fashion that you can’t get in an expensive theoretical sell-side analysis nor by filling in 20 things about your business on a website and having it calculated by a program. Here’s how it works:

Essentially, it’s a rare buy-side, detailed perspective into what a likely buyer for your business would look like and think your company is worth today coupled with a “road map” to build value for a future exit based on your goals. Included, as would be expected, is opportunities/red flags, and what granular items need care, improvement, etc., to reach your future goals. We add even more value by providing atypical features such as a likely deal structure and a conversation with a partner at Cogent to explain the report and have a Q&A discussion.

It’s an extremely high value tool and not very time intensive on your part to provide us what’s needed to produce it, with the resultant material very useful now and as you move forward. The following outlines the product:

  • We’ll develop an internal profile and model of your business, as if you were selling your company now, using:
    • A “Business Review” call with a Cogent partner to get granular on your company and goals
    • Review of key operations diligence materials such as customer contract samples
    • Financial, employee, customer, and vendor reports, which our business/financial analysis staff will validate with you to create our internal model
  • We’ll develop a buyer profile of the most likely buyer for your company today (because that’s what we do)
  • A report will be developed based on your company profile/model and the buyer profile including:
    • The current price range our buyer profile would likely pay as well as a typical deal structure
    • Buyer points of interest (what to keep doing and what to improve)
    • Risk factors (pro and con)
    • Red flags (things you need to work on)
    • KPIs and comparison to nominal ranges (for benchmarking)

We’ll take all the above and boil it down into an intuitive report that includes the “Market Value Analysis” and “Road Map” for your reference so that you can work toward your price range goal, set benchmarks to help get you there, and be able to work on your attractiveness to a better, more desirable buyer (also affecting the ultimate price tag and deal structure). A Cogent partner will walk you through the report so it is fully understood and answer any questions about the results, which is as valuable, if not more valuable, as the report itself.

Ultimately, we are preparing and delivering over $6000 in value, but through June 31,2017 we are offering it at a 25% discount.

If you would like to learn more, we’d be happy to get on a call to discuss and add further details as needed. Just click here to tell one of our firm's partners you'd like to talk. Looking forward to speaking soon!


Posted on Jun 14, 2017