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PRODUCT 3: The Suitegum Diligent Business Valuation & Evaluation

The Suitegum Diligent Business Valuation & Evaluation includes everything encompassed in the Suitegum Business Valuation plus a more granular investigation into 17 key valuation indicators.

As the product name suggests; this is the fundamental evaluation used by serious business investors to test the claims made by sellers in their marketing material.

This product is not a financial due diligence or audit.

We conduct an in-depth analysis of the 17 key valuation indicators. The process stress tests the claims of the business in each of these areas.

The process uses a thorough analysis of all the financial statements and their individual, and relational elements – inter and intra income and cash flow statements, and balance sheet relationships – their present statuses, their historical performance and resulting momentums.

Use cases
  • Fundamental due diligence

  • Initial exit planning

  • Divorce settlements

  • Larger company equity allocation and dissolution

  • Seller claim veracity studies

  • Pre business rescue

  • Insurance business value

  • Long term incentive schemes & ESOPs
Requirements
  1. All the financial statements of the business, but at least the last five years

  2. The management accounts for the period since the last financial statements

  3. Monthly sales and gross profit history
    • Per customer
    • Per product and or service
    • Per division

  4. Interviews are face to face as follows:
    • 1 day workshop
    • Directors
    • Shareholders
    • Senior staff
    • Affected parties
    • 1 day feedback and collection of requirements
    • 1 day detailed interview

  5. A stomach for dealing with real issues
The cost of The Suitegum Diligent Business Valuation & Evaluation is R85,000. Payments are as follows:
  1. R35,000 upon agreement to engage

  2. R30,000 at the feedback and collection session

  3. R20,000 prior to delivery of the final report

These payment terms are consistent with standard 10 of the Uniform Standards of Professional Appraisal Practice (USPAP) which requires a valuer’s remuneration to be independent of appraisal results, and not compromised in any way by the figure arrived at.

This product is also available as a twelve-month term service contract with feedback workshops where progress is monitored and scored:

  1. 12 months initial engagement, rolling over to month on month

  2. R8,500 per month, in advance

  3. Monthly trading updates

  4. Quarterly report sessions
Select a different valuation product:

1. Key value indicator (KVI) evaluation
2. Market business valuation

Back to Valuations...Back to Valuations
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If you require a professional, realistic, market-related valuation of your business please call 011 083 6663 or complete the form and submit it.


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"Mark gave me a valuation on my business, but couldn't assist in finding a buyer due to the geographical logistics, so he handed me over to a local business broker. This broker gave me a much higher valuation, having done a Swedish massage on the figures I supplied. I was thrilled at the prospect of getting what I thought was a reasonable sum for a little business, so we pitched it at the local broker's valuation.

Three buyers, much negotiation, a final signature on a piece of paper. Cloud 9! Days and days went by, the deposit was paid, the due diligence was conducted, and whamo! The buyer came back and said he was unhappy with the valuation, could we renegotiate?

Now, being a reasonable person, I 'pouted diplomatically' but finally, we have settled on the valuation Mark gave me in the first place. As he says, the best deals are done when neither side is too happy with the result!

I guess I just wanted to say that we should be sensible and realise that our businesses aren't quite as valuable to others as they are to ourselves."

Barbara Hilton-Barber

 

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