An accurate value, every year.
For growing companies with $2 million to $10 million in revenue that want to know each year whether the business is becoming more valuable, and what to focus on next.
Who it’s for
Owners and leadership teams of growing, privately held companies
What you receive
An annual conclusion of value, a review of the drivers behind it, and priorities for the year ahead
How to start
A confidential call with our principal
Why value your company every year
Revenue growth and value growth are not the same thing. A company can add sales every year while its value stalls because margins thin, a few customers grow too large, or more of the business comes to depend on its owner.
An annual valuation measures what actually matters. It turns the company’s value into a number leadership can track, discuss, and manage, rather than a question that only gets answered when a buyer appears.
It also puts you in a stronger position for whatever comes next. When the time comes to sell, raise capital, or bring in a partner, you will have years of consistent, independent support for what the business is worth.
What each year includes
One engagement, repeated with the same rigor and the same analyst each year.
01
Updated conclusion of value
A fully supported valuation as of your chosen date, prepared with a consistent methodology so year-over-year changes are meaningful.
02
Value driver review
A comparison with the prior year across the factors buyers price: earnings quality, recurring revenue, customer mix, owner independence, and management depth.
03
Priorities for the year ahead
A short list of the specific improvements most likely to increase value, so leadership knows where effort will pay off.
04
Annual review meeting
A working session with ownership and leadership to walk through the results and answer questions.
How companies use the program
The same annual value supports several needs at once.
Equity incentive plans
Phantom equity and profits interest plans help retain key people without giving up ownership. An independent annual valuation gives the plan a consistent, defensible unit value.
Growth capital and lenders
Banks and investors look for independent support for the company’s value. An annual valuation is ready when they ask.
Long-term exit planning
Owners planning to sell in three to ten years can see which changes move the number and time the sale around real progress rather than guesswork.
The program can also keep a buy-sell agreement’s price current between owners.
Consistency is the point
An annual value is only useful if each year is measured the same way.
Because every engagement at FMV Financial is led by our principal, the same analyst who prepared last year’s valuation prepares this year’s. The assumptions are carried forward, documented, and revisited deliberately, so when the number moves, you know it moved because the business changed.
Common questions
How is an annual program different from a one-time valuation?
A one-time valuation answers what the business is worth on a single date. An annual program answers that question every year using a consistent methodology, so changes in value reflect changes in the business rather than changes in approach. It also adds a yearly review of the drivers behind the number and priorities for the year ahead.
Does a phantom equity or profits interest plan need an annual valuation?
Many do. These plans often define payouts or unit values by reference to the company’s value, and an independent annual valuation gives participants and owners a defensible, consistent basis. The plan documents govern what is required, so we coordinate with your attorney and CPA on the specifics.
When in the year is the valuation performed?
Most companies choose a valuation date at fiscal year-end, once financial statements are available. The date can also be aligned with a plan’s grant or vesting schedule or a lender’s reporting requirements.
Can the annual valuation be used when we sell?
It gives you and any advisors a strong, well-documented baseline and makes a sale far easier to prepare for. A transaction usually warrants an updated valuation as of the sale date, and the prior years’ work makes that update faster and more informed.
Is this only for companies planning an exit?
No. Many companies use the program purely as a management tool, to understand whether growth is creating value, to support equity incentive plans, or to meet the needs of lenders and investors.
Preparing to sell sooner?
If a sale is on the near horizon or an offer has arrived, an exit valuation is built for that decision.
Start with a conversation.
The first call is a chance to understand your goals and decide whether we’re the right fit. There’s no obligation.
(540) 550-5279