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 relevant data and good fundamentals.   Five factors set us apart.        

First, we don't force all valuations into one method that may be the only one we like or know.   These types of reports are supposed to be labeled 'restricted reports' but by and large are passed off as full appraisals.   We are true to professional standards and apply all three valuation approaches as a project demands.  Solutions are then engineered so that our opinions must be considered by authorities.

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Our viewpoint is that of an investor, not a Fair Value accountant or university statistician.  Value is driven by cash flow, margin, growth rate, entry barriers and market opportunity.  These elements explain the value of all business types - seed stage to mature, professional services, retail, distribution, software, manufacturing and real estate. 

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45% of valuers rely on a multi-variable formula involving public company data that has wide variations in outcomes.   Dealmakers find these appraisals to be unreliable.   We do too.   We choose M&A data as the primary benchmark in the same way that corporations, private equity companies and business brokers do.  
 

   We use scientific method to connect industry data and company performance to value.  Scientific method is superior to indirect approximations using statistics, big data, binomial lattices and differential equations.  These alternatives are intellectually stimulating but are unrelated to true value drivers.  

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Last, we examine inventory, contingencies and owner issues that occur outside the formulas and financial statements.  These factors are critical when extraordinary events like natural disasters occur, and everyday for agriculture, retail, distribution, real estate holding companies and equity holder buy-outs.  

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For more depth, check the site library.

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