Santa Barbara Valuations Inc.

To bring a clear, fundamentally sound finding of value to each client

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When competitors' cases go to Tax Court or when negotiations fall apart over valuation, it is often because the analyst has failed to use good fundamentals.  Our positions are engineered so that authorities have no choice but to consider them.  Four factors set us apart - and are why we are able to produce reliable results for our clients.        

First, we examine companies like a private equity investor, not like an accountant.  Value is driven by cash flow, entry barriers, margin, growth rate and market.  These elements explain the value of all business types - profitable, unprofitable, early stage, mature, services, retail, distribution, software, manufacturing and real estate. 

   Next, we use scientific method to connect company performance and data to value.  Scientific method is superior to approximations using statistics, big data, CAPM, binomial lattices and differential equations that certainly take skill, but can be enormously inaccurate.  

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Critically important, we rely on M&A data as private equity investors and business brokers do, and flex between approaches for the demands of situation.  The typical accountant uses one complex formula based upon public market data and translates this for a private company.  With the extra variables involved, it requires many more judgements than M&A data.  Business brokers simply reject the public market translation for being unreliable.

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Fourth, we purposely examine inventory, contingencies and owner issues that income formulas don't distinguish, which is key for real estate partnerships, retail, distribution, and settling equity holder disputes.  

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For more depth, check the site library.

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