Valuations

Valuations are a key starting point to any negotiation to sell or to buy a business. The Seller has a valuation and the Buyer has a valuation which represent the expectations of each party..

Valuations are always opinions and are often presented by outside parties engaged by the Buyer and/or by the Seller of the potential transaction. Often those outside parties neither offer nor represent Buyers or Sellers able to bring those valuations to reality.

Based on a variety of formulas, those valuations become respectively the expectations of the Seller and of the Buyer. However those formulas are generalizations and each Seller’s business and each potential Buyer are unique. Accordingly expectations do not always align. This could be because the Seller or the Buyer does not fully understand the value of the potential transaction

Stoney Point LLC works to bring the respective parties into alignment. This is done by presenting the clearest possible representation of the present value and future potential of what is for sale to the Buyer in their terms. And by providing the Seller all of the appropriate information so that Seller’s expectations are aligned with the current marketplace. Both parties will evaluate the proposed value of the transaction in their terms as to how it may contribute to their separate goals.

The only true and absolute valuation of an individual transaction is that which is agreed to by a willing Seller and a willing Buyer. Independent agents may offer transaction valuations using a variety of tools but it is up to the Buyer and to the Seller to make the final determination. A successful transaction is always based on a compromise between Buyer and Seller. While there may be a small element of mutual dissatisfaction, there is always a greater element of mutual satisfaction in a finalized transaction. Stoney Point LLC will help all parties reach that conclusion to the best possible advantage of the party we represent.

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