Technical brief
Earnings after the owner leaves
Historical profits may rely on relationships, expertise or work performed by the departing owner. We assess replacement remuneration, transition costs, recurring revenue and operational continuity. The resulting maintainable earnings must reflect the business management will actually acquire, not an unadjusted historical average.
Value and debt capacity are different
A cash-flow sensitivity analysis considers tax, capital expenditure, working capital and debt service. A financing constraint does not automatically reduce market value, but it can affect the feasible transaction structure. Deferred consideration and seller financing must be assessed for risk rather than treated as equivalent to immediate cash.
Evidence for each party
The report explains the selected methods, valuation date, assumptions and enterprise-to-equity bridge. Scope and permitted reliance are agreed in advance. Lenders may require their own diligence or an approved panel adviser; an independent valuation does not itself constitute lending approval.
