MARKET VALIDATION
The critical 1^st step to the successful sale of privately held companies

Avalon Advisory, Inc.’s exclusive MARKET VALIDATION is a comprehensive assessment of a company’s strategic market/investment value, based on proven market dynamics and company “value drivers,” such as growth potential, tangible and intangible assets, intellectual property, company trends and industry trends, Mergers & Acquisition (M&A) market environment, and much more.

All business owners and company shareholders who are considering selling should only enter the market to do so with advance knowledge of true market values.

A Study Reported in Business Week Magazine

Underscores the Importance of This Knowledge:

“Seven offers ranged from financial evaluation – 1.5 times cash flow to market evaluation – 7.6 times cash flow. The spread is very pronounced.”

The IRS Also Recognizes the Wide Range in Market Values in its Rev-Rule 59-60: 

“No formula can be devised that will be generally applicable to the multitude of different valuation issues…
Valuation… is in essence, a prophecy as to the FUTURE.”
 

Avalon’s MARKET VALIDATION is a multi approach “forward looking” document (including in-depth company and industry research), that uncovers and identifies a company’s likely Strategic Investment Value, (not its mathematical or formula value typically used by many business appraisers), and includes Present Value of Future Earnings, Asset ,and Market approaches, including public company/guidelines, and comparable private transaction market data.

The successful sale of a business is a complex process, and the critical 1^st step must strongly support the rest of the process.  Avalon’s MARKET VALIDATION is founded on more than 15 years of professional mergers and acquisition transaction experience and provides selling shareholders the material advantage of advance knowledge of true market values, and the opportunity to obtain tax advice and legal counsel prior to entering the market, resulting in total confidence to successfully negotiate the highest possible selling price and terms, even in the stark reality of today’s M&A marketplace.

For More Information Contact:
Avalon Advisors, Inc. • 949.226.7030
John L. Bates: Direct 949.212.7318 • jbates@avalonadvisorsinc.com
John M. Misuraca: Direct 949.334.1752 • jmisuraca@avalonadvisorsinc.com