What is the value of a company?

Companies are valued differently and valuation methods often vary by industry. Many businesses sell for a multiple of adjusted EBITDA (cash flow), some sell for multiples of recurring revenue and others sell for multiples of steady state cash flow.  Vertex Capital helps clients determine the appropriate valuation method and factors that impact the value of each individual business, so that our clients achieve the best possible outcome.

Do I need a representative?

A seller who sells without representation limits the number of prospective buyers and ways to get a deal done. In addition to strategic connections within your industry, Vertex Capital introduces buyers and sellers to targeted prospects beyond your industry and typical geographic area.

Does Vertex Capital prepare valuations for businesses?

Yes.  Contact Vertex Capital to discuss the value of your business, areas to focus on to increase your enterprise value, and whether now is the right time to put your company on the market.

Do business buyers keep current employees after the sale?

Most financial buyers keep the majority of existing employees; they want to grow the company and value existing employees who brought the company to its current level.  Some strategic buyers fold a company into an existing operation and may keep no employees, all employees or only those employees who are crucial assets.  Vertex works with companies to determine a good fit.  

How should I begin to prepare my business for sale?

Update financial statements for the last 3 years.  It is important to have monthly financial statements as many buyers will pay a multiple of adjusted EBITDA (cash flow) for the trailing 12 months. Other preparation for sale will vary by industry.