Valuation is as much art as science, requiring the exercise of good judgment combined with a systematic analysis of the data. That's why experience is such an essential ingredient of the process. There are many ways to calculate a company's financial value, and none of them is perfect. All methods require trade-offs which must be balanced with the strategic objectives driving the deal. Capstone's solution is to adopt multiple perspectives, while exercising patient and thorough analysis.
Our valuation advisors bring over nineteen years of experience to the table and are well versed in sophisticated and complex valuation methodologies. Capstone's services include valuations for acquisitions, divestitures, strategic planning, and any circumstance where it is important to achieve a reliable measure of a company's value.
Here is a brief summary of the principles that guide our valuation process:
Ultimately value lies in the eye of the beholder — or to be precise, in the eye of the buyer on the one hand, and of the seller on the other. Multiple factors determine how value is perceived.
Here is a summary overview:
There are many widely accepted techniques for arriving at a company valuation. At Capstone, we do not believe in one "right" method. We draw on all or any of these approaches in the combination that is most appropriate for the specific transaction:
Different valuation methodologies result in calculating different values for the same company. The chart below illustrates an example of this concept.
There is no one right method that is best suited for every situation. Understanding your goals and strategy is an important part of selecting the most appropriate valuation method.
Valuation is a combination of art and science, but that does not mean it should lack discipline. Capstone applies a step-by-step process that is summarized in this chart:
To learn more about our valuation services, call us for an exploratory conversation at 703-854-1910.