Cambridge International Partners - firm valuations
Cambridge International Partners
Investment Management, investment managers
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- Cambridge is engaged to provide formal valuations of investment managers or securities firms – on a one-time or recurring basis – for a wide variety of reasons, including . . .
- Implementation of internal equity transfer plans.
- Ownership or business restructuring.
- Estate or tax planning.
- Litigation support (e.g., divorce, shareholder suits) and expert testimony.
- Goodwill impairment tests.
- Regulatory compliance.
- Preparation for a transaction, or evaluation of transactional alternatives.
- We approach our valuation work with the same philosophy as our transactional work: bringing the specialist knowledge, market and transactional experience of our principals to bear on a specific client need. We do not provide generalist valuation services – our valuations are industry-specific, and they are grounded in the realities of how investment management firms are valued by buyers, sellers and investors. We apply a combination of industry-leading valuation tools, including:
- Extensive, proprietary, segment-specific database of comparable private transactions.
- Public company valuations.
- Industry and firm-specific discounted cash flow and capital pricing models.
- Minority and lack-of-marketability discounts adjusted to the specific circumstances.
- Normalization of earnings, including adjustment of compensation to market bonus where appropriate.
- Experience with the array of qualitative firm characteristics that contribute to, or detract from, a firm’s value relative to market norms.
, investment managers