• INIX Consulting & Brokerage is a full-service Lower Market M&A advisory, Business Brokerage and Valuation firm committed to providing our clients with highest quality service. With local market expertise and national exposure, we are the right choice for your business exit needs.

1. Start with the business
–  Value Drivers:  Size, growth rate, management, niche, history
–  Value Detractors:  Customer concentration
Poor financials
Outdated M&E
Few assets
Lack of agreements with employees, customers, suppliers
Poor exit possibilities
Small market
Potential technology changes
Product or service very price sensitive

2. Financial analysis: Market Value – comparables
Multiple of Earnings – based on rate of return desired

3. Structure and terms: 100% cash at closing could reduce price 20%

4. Second opinion: Even professionals need a sounding board

5. Indications of high value:
– High sustainable cash flow
– Expected industry growth
– Good market share
– Competitive advantage – location/exclusive product line
– Undervalued assets – land/equipment
– Healthy working capital
– Low failure rate in industry
– Modern well-kept plant

6. Indications of low value:
– Poor outlook for industry –
foreign competition
price cutting
regulations
taxes
material costs
– Distressed circumstances
– History of problems – employees, customers, suppliers, litigation
– Heavy debt load

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