In this interview, we discuss business valuation and appraisal with Marcus Sullivan, CVA. Mr. Sullivan is a certified valuation analyst, as well as the Founder and Managing Partner of Sullivan Consulting, a boutique consulting firm based in Puerto Rico. Today, Mr. Sullivan tackles topics such as the importance of due diligence and how you can get a premium value for your business. Not only does Mr. Sullivan explain the why and how of business valuation, he also shares with us the three most critical factors that improve the value of a business.
Key Points from our Conversation
- Most buyers perform a business valuation prior to engaging in an M&A transaction.
- Free cash flow represents the main value driver of any business no matter what industry they are in.
- It is largely understood that most of the value in successful companies lies in the intangible assets.
- The first aspect any buyer or investor considers when buying a business is the cash it generates and returns to the buyer.