Professional standards present a clear distinction in our work and the expression of our estimates of value as (1) calculations, (2) within a scope restricted report, (3) within a full self-contained report and (4) in a review report. In many cases, potential clients come to us asking us to appraise their business. In fact, what they really want is a set of calculations (usually presented within a range) and someone to represent them in negotiations with the buyer. As extensively written in previous issues of this newsletter, this is the “classic” determination of the difference between fair market value (hypothetical buyer / hypothetical seller) and investment value (actual buyer / actual seller). Of course, synergies and strategic value are considered by the investment value standard.
In such an instance, ABA was engaged to provide just such a range of calculations and then to represent the seller in negotiations with a publicly traded company. Over a period of about a year and a half, ABA assisted in the final sale of the client company in excess of $30 million. ABA and it’s principals have also been involved in the representation of buyer / seller or company in transactions valued (in combined total) in excess $500 million. We have also been engaged by client companies to simply provide a range of estimated values in connection with their strategic planning and/or assessment of planned merger/acquisition activities. We have also performed acquisition candidate research and due diligence for a company headquartered in Europe.
Our work ranges from simple fee-based to contingent seller representation agreements. Our skills and experience are unique, encompassing valuation, deal terms, actual transaction experience, GAAP and tax accounting. A tough combination to beat and certainly to find at one firm.