Lani’s clients have businesses in a variety of industries, including banks, payroll companies, and marketing firms. Her clients tend to come to her with the intention of selling and are often not sure what the value of their business is. In short, Lani uses the BizEquity platform to figure out what the value of her client's businesses are when they want to sell or liquidate.
“It has been a really nice resource because I generally use BizEquity’s data to explain what the value of their business is and point out areas they can work on to positively impact their value. The client and I watch this happen fairly quickly once they focus on KPIs to grow their business,” stated Lani.
Recently, Lani had a case with a construction company looking to sell its business. An outside buyer had put in an offer at $600,000. Lani was brought in to value the company, and what she found from an immediate glance at the numbers and where the business was tracking was that it was worth much more. Upon conducting the valuation, the company was valued at $1.2 million. The buyers then decided to pay a CPA firm to perform a formal valuation and that number was $50 off from the BizEquity valuation. “Why should my clients spend $30,000 to do this when I charge $2,500 and you get the same results,” Lani questioned.
The business owners decided to either let the potential buyer walk or come up with a better offer. Since Lani saved the company from potentially accepting a low-bar offer, they decided to continue to work with Lani to continue to grow the value of their business. After 18 months, the company was valued again at $4.2 million and was sold to a different buyer.
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