Cambridge International Partners - firm valuations

By: Cambridge International Partners  09-12-2011
Keywords: Investment Management, investment managers

Firm Valuations

  • 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.

Keywords: Investment Management, investment managers

Contact Cambridge International Partners

Email

Print this page

Other products and services from Cambridge International Partners

09-12-2011

Cambridge International Partners - equity transition

The valuations or valuation formulas to be used to price the equity or set an option strike price, including the application of minority and lack-of-marketability discounts. The firm’s focus at this time is on growth, continued independence and attracting, retaining and rewarding talented professionals over the long term. Financing of equity purchases – company/third-party loans; other forms of external financing; “cashless” options; a mix.


09-12-2011

Cambridge International Partners - transactional advice

An organized and competitive process that assures our client of the best available balance of valuation, transaction terms and strategic/cultural fit. Deep existing relationships with the CEOs or business heads of strategic and financial investors in the financial services industry around the world. Cambridge is positioned to provide expert advice to assist owners in achieving these and other objectives in the search for a strategic partner.


09-12-2011

Cambridge International Partners - other

Cambridge is in a position to offer customized solutions and advice to clients for whom the conventional full range of m&a advisory services exceeds the present need, or where a sale or purchase is not necessarily the best or desired answer.


09-12-2011

Cambridge International Partners - acquisitions

Cambridge can assist these organizations in defining and refining the mission, reviewing and screening the universe of potentially compatible acquisition targets with, and articulating the benefits of an association with our client as we begin to meet with targets.