Business Value Mapping

The market value of a publicly-traded company is easily discernable – check the share price in the daily newspaper. The owners of privately-held companies have no such readily available method of deriving their respective market values.

Business Value MappingSM (BVM) is a proprietary process whereby targeted increases in a business’ value are documented as they are being achieved, and subsequently validated. We believe BVM is the only reliable approach to tracking a privately-held company’s value.

The Process

• A Business Valuation establishes the baseline for measuring ongoing value- enhancement.
• The Strategic Exit Plan of the enterprise is evaluated. The plan’s expectations are compared to the company’s historical performance, trends within the industry, and other available information regarding market share, competition, etc.
• AAL issues a Future Intrinsic Value Estimate (FIVE) Report. The FIVE Report comments on the reasonableness of the company’s plan and the anticipated enhancement to the company’s current value upon achieving the stated objectives in that plan.
• The FIVE is updated periodically, usually on an annual basis, to reflect changes in the company and the marketplace, and to report on progress relative to achieving the established objectives.

BVM is an invaluable tool to business owners and investors, boards of directors, lenders, and other company advisors. It elevates due diligence to an entirely new level.

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