Client: Private shareholder in a services company (U.S.)
Challenge
A longtime client was preparing to entertain offers for their one-third stake in a private company. The problem was simple but critical: they had no clear benchmark for what that share was truly worth. Going into negotiations without preparation would put them at a severe disadvantage and risk leaving money on the table.
Solution
I stepped in to bring clarity. First, I conducted a full valuation of the company, using both Seller’s Discretionary Earnings (SDE) and EBITDA calculations as the foundation. I dug into historical sales, operating expenses, and cost of goods sold to uncover the company’s true earning power. Then I layered in industry multipliers and add-back adjustments to ensure the valuation reflected not just the books, but also the realities of the market. The result was a comprehensive valuation report, complete with a realistic range and a tailored negotiation strategy.
Outcome
With a solid, data-backed valuation in hand, the client walked into negotiations with confidence. That preparation paid off: they secured an offer 15% higher than their original expectations, ensuring they captured the actual value of their investment rather than settling for less.