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

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