► The Blueprint for Building Value™ will quantify the financial value of your business, analyze your business, interpret your vision, and effectively communicate this information to key stakeholders. This tool will improve business performance and heighten your degree of confidence to make the best capital markets decision.

The decision may be to sell the business, finance the business, raise capital, grow or cultivate the business, create an ESOP, insure the business or its Key People, or develop a comprehensive estate or gift tax plan, or a combination of strategies.

This insightful tool identifies and measures Your Company’s strengths and weaknesses − which if properly acted upon will increase the business’s value.

• The Blueprint for Building Value™ is a comprehensive report of a substantive analysis of your business including its financial valuation, operational and structural aspects, and
capital markets alternatives.

• The Blueprint for Building Value’s Questionnaire Workbook is designed to accumulate and put in one place the most critical business information, in a streamlined no-nonsense fashion.

• The benefits that the Blueprint for Building Value™ brings are many (including but not limited to the following):

 For the Business owner – a step by step guide for him or her to accumulate critical corporate information about almost every aspect of the business and in turn be used to efficiently communicate the data to Your Company’s stakeholders and professional advisors. This reduces communication inefficiencies and in turn reduces the cost of professional advisors’ services. It provides a benchmark financial value that can be used as a baseline value to measure the effect on value when improvements are implemented.

 For the advisor − a guide for him or her to highlight the germane issues (good and bad) that the company possesses − including but not limited to: valuation enhancement, management best
practice, organizational and legal structuring and various financial structuring areas.

Section 1 – Business Valuation
The first step of a prudent Business Owner is to know the business’ fair market value.
The Valuation in the Blueprint for Building Value™ is an independent, unbiased calculation of the value of a business or a business interest. The valuation estimates the complex economic benefits from combining a group of physical assets with a group of intangible assets such as patents, trademarks, copyrights, employment agreements, securities, and goodwill. The valuation provides a benchmark that can be used by the owner to compare against as improvements to the business are implemented.

The Calculation of Value includes but is not limited to:
 Business valuation principles and theory,
 Financial statement analysis,
 Approaches and methods necessary to determine value, and
 Industry and economic conditions.

For example:
Consideration Total Calculation of Value

Asset approach – net realizable equity $1,976,690 0% $0

Income approaches:

Discounted future cash flow method 6,653,070 20% 1,330,614
Capitalization of cash flow method 6,851,931 10% 685,193
Excess earnings method 1,754,442 0% 0

Market approaches:

National 5,923,951 30% 1,777,185
Local 8,469,406 30% 2,540,822
Public companies 16,338,780 10% 1,633,878

Enterprise value, before premiums and discounts
100% $7,967,692

Working capital 1,916,327

Fair market value indication − before premiums or discounts
$9,884,019

Have a question? Contact Michael Gilburd.