ZweigWhite 2011 Survey Helps A/E/P Firms Navigate Valuation Process
Press Release: February 5, 2011
How firms value their enterprises has far-reaching implications that impact both the firms and their shareholders on a financial, organizational and cultural level and is, according to ZweigWhite Valuation Consultant Tracey Jeffers, one of the most confounding decisions faced by privately held A/E/P and environmental consulting firms.With the survey data included in the newly released 2011 Valuation Survey of Architecture, Engineering, Planning & Environmental Consulting Firms from ZweigWhite coupled with ZweigWhite's exclusive Z-Formulas, firm leaders can learn quickly and easily what their firms are worth.
A longtime expert in the field of firm valuation, ZweigWhite has been researching and publishing these valuation surveys for the past 21 years, and the valuation Z-Formulas have proven to be invaluable tools in ZweigWhite's own business valuation consulting practice by using them as a test for the reasonableness of its valuation conclusions in virtually every business valuation engagement.
"This survey can provide firm owners with valuable insight on improving share value," Jeffers says. For instance, according the 2011 Valuation Survey, A/E/P and environmental consulting firms actually are worth more when for sale. The median TIC (total invested capital) value per employee ratio for valuations conducted for a potential or actual sale or merger is $81,250, significantly higher than for valuations performed for an internal ownership transfer ($53,534), a buy/sell agreement between stockholders ($60,161) or as an ERISA/ESOP/IRS requirement ($63,183).
The survey includes benchmarking data on industry valuation norms that also will further the reader’s understanding of how business value is defined, how it is determined and, perhaps most importantly, how it is created.
"The survey is a good tool to provide firm owners with a ballpark reference that small business owners tend to seek," Jeffers says, adding that firm owners should keep in mind that the metrics of their individual firm may differ from those in the survey.
The 2011 Valuation Survey covers the many reasons and circumstances that call for a firm valuation, as well as the special considerations and standards of value that apply depending on the purpose of the valuation. This invaluable resource also discusses the more technical aspects of the various approaches that a business appraiser may use.
The ZweigWhite 2011 Valuation Survey of Architecture, Engineering, Planning & Environmental Consulting Firms ($495)
is available at www.zweico.com
ZweigWhite is the nation's leader in enhancing business performance for architecture, engineering, planning, and environmental consulting firms. The ZweigWhite team consists of experts in strategy, mergers and acquisitions, business valuation, ownership transition, human resources management, finance, marketing, market research, project management and project delivery methods who collectively produce a comprehensive suite of products and services, including advisory, consulting, newsletters, industry reports, executive training, business conferences, and more covering virtually every aspect of firm management. The firm is headquartered in Fayetteville, Arkansas, with additional offices in, Chicago, IL, Durham, NC, and Natick, MA. The ownership of ZweigWhite is investors Eli Global, BIA Digital Partners and MZ Ventures, Inc., with management including Mark Zweig and Ed Friedrichs. For more information, contact Sonya Stout at (479) 582-5700 or firstname.lastname@example.org
About Zweig Group
Zweig Group, three times on the Inc. 500/5000 list, is the industry leader and premiere authority in AEC firm management and marketing, the go-to source for data and research, and the leading provider of customized learning and training. Zweig Group exists to help AEC firms succeed in a complicated and challenging marketplace through services that include: Mergers & Acquisitions, Strategic Planning, Valuation, Executive Search, Board of Director Services, Ownership Transition, Marketing & Branding, and Business Development Training. The firm has offices in Dallas and Fayetteville, Arkansas.