Enterprise Services, Inc. Business Transitions and Valuations
Client Success Stories

ESI assists clients in many ways as their businesses change. Here are a few examples of projects we’ve worked on.

Problem
After years in business, a client needed to evaluate the viability of various exit strategies, including selling the company to an ESOP and selling the company to a strategic buyer.

ESI Solution
ESI was able to prepare feasibility reports to assist the client in evaluating all their options, thus helping them plan for the future.

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Problem
In contemplating a merger, two companies in similar lines of business needed to determine if combining forces made sense.

ESI Solution
First, ESI developed a value for each company. We then combined the financial statements from each company to determine a projected value for the new company created by the merger. Using this draft, the management of the new company worked out a projected cash flow, and determined the structural and operational needs of the new company. The discounted cash flow analysis was then used as the basis for determining the overall value of the new company and the subsequent equity allocation.

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Problem
A company needed to determine if an offer to buy them out was fair.

ESI Solution
The ESI Team was able to help this client assess the reasonableness of an offer to purchase. We were able to determine a recommended purchase price based on similar privately-held companies, allowing them to negotiate from a position of strength.

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Problem
Three companies needed a way to make sure equity would be fairly divided after a planned merger. The companies and their owners had diverse holdings, and disagreements over value allocation threatened to delay the merger.

ESI Solution
ESI was able to provide an objective valuation for each individual company. These valuations allowed equitable percentages to be established in the new company, and were also used to establish the new shareholder schedule. The result was a merger in which all parties were confident they had received impartial, well-documented information, and the deal went through.

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Problem
The sole owner of a large construction firm was looking to retire, but didn’t know what exit strategy would best suit his circumstances.

ESI Solution
ESI helped the owner define his business goals and provide objective guidance on the pros and cons of various exit strategies. Based on the timing of his anticipated retirement, the competitive environment, and a consideration of all tax consequences, the firm installed an Employee Stock Ownership Plan (ESOP) and developed senior management incentives to retain its loyal employees for business continuation.

Enterprise Services, Inc. Business Transitions and Valuations
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