Our Valuation Philosophy

At S-Squared Business Consultants, our valuation team is comprised of highly trained professionals with terminal degrees, such as a PhD in finance, and industry-leading certifications, including the Chartered Financial Analyst (CFA®) and Certified Valuation Analyst (CVA).

A proper definition of value (or standard of value) specifies how the value is understood and, therefore, specifies a type of value. Identification of the correct definition of value to apply in a given valuation is a key step in developing an appropriate valuation estimate/range. The status of the company (in the sense of whether it is assumed to be a going concern or note) and the intended use of the valuation are key in determining the definition of value to apply. 

Firms with similar earnings will likely have different valuations depending on several industry and company specific factors. Depending on the nature of the assignment and the requirements, we consider a range of company, industry, and stock-specific factors as a part of our due-diligence. Company and industry specific factors that we consider include:

·  Customers

·  Suppliers

·  Competition

·  Sustainability

·  Business model

·  Cyclicality

·  Growth opportunities

·  Risk and weaknesses

·  Industry

·  End markets

·  Financials

·  Management

·  Key personnel

Stock specific factors need to be considered in private company valuation - especially when valuing minority marketable and minority non-marketable interests. We are careful to apply relevant and justifiable discounts for lack of control and/or marketability while valuing minority interests. Stock specific factors that we consider include: 

·  Liquidity of equity interests in business

·  Concentration of control

·  Potential agreements restricting liquidity