We assisted a business owner in his 60s who sought to transfer a minority interest to his two children. The company, driven by a commitment to providing essential healthcare services, had experienced a notable uptick in revenues attributed to securing lucrative government contracts. The prospect of continued exploration of opportunities at both state and federal levels added a layer of promise to the business’s growth trajectory.
Our valuation process involved a meticulous analysis of various factors, encompassing the company’s historical financial performance, market trends within the healthcare sector, and the potential impact of forthcoming changes, including the conclusion of long-term contracts in the upcoming year. This careful consideration of both current successes and impending transitions aimed to offer a comprehensive understanding of the business’s value.
Taking the unique circumstances into account, the valuation also factored in discounts for lack of control and marketability. Given that the owner was seeking to transfer only a minority interest, it was crucial to assess the value in the context of a reduced level of influence over decision-making and limited ease of selling that specific ownership stake.
The valuation outcomes, coupled with the owner’s aspiration to transfer a minority interest to his children, highlighted the company’s inherent value and its potential for continued success. The insights gleaned from our valuation played a pivotal role in guiding the owner’s decision- making process, demonstrating the importance of a holistic valuation approach that acknowledges both short-term fluctuations and long-term growth strategies in the dynamic landscape of the healthcare industry.