Valuation

Our Valuation Process: Step by Step

1. Initial Consultation & Goal Setting

We begin by understanding your objectives:

Are you selling, planning an exit, or just want to assess your business’s health? This step ensures the valuation aligns with your purpose.

2. Document & Data Collection

We gather the necessary business information, including:

• Financial statements (3+ years)

• Tax returns

• Owner’s compensation and add-backs

• Lease agreements, key contracts

• Equipment lists and inventory

• Business operations overview

3. Financial Analysis

Our team reviews your financials to normalize earnings and identify discretionary expenses. We calculate SDE (Seller’s Discretionary Earnings) or EBITDA, depending on business size and type.

4. Method Selection

We apply one or more industry-recognized valuation approaches:

• Market-Based Approach: Compares your business to recent sales of similar companies

• Income-Based Approach: Projects future cash flows and applies a discount rate

• Asset-Based Approach: Evaluates the tangible and intangible assets of your business

5. Industry & Market Benchmarking

We use data from comparable transactions and industry reports to position your business within the broader market and support valuation multiples.

6. Valuation Report & Walkthrough

You’ll receive a clear, easy-to-understand valuation report with:

• The estimated business value

• Supporting financial metrics and analysis

• Key drivers of value

• Recommendations to enhance value prior to sale

7. Advisory & Strategy

If you’re preparing to sell, we help you understand the next steps—whether it’s listing your business, improving value drivers, or navigating buyer discussions.

Why Work with Us?

At Holland Point Business Advisors, we bring decades of transactional experience, market insight, and analytical expertise to every valuation. Our goal is to provide business owners with a realistic, defensible, and strategic understanding of value—backed by data and tailored to your unique situation.