MCA Financial Group was engaged to perform a business valuation for a client embroiled in a partnership dispute involving a forced buyout. The company, which recycled scrap metal and exported recycled products to Asia, boasted a $65 million annual revenue and 60 employees, with headquarters in the Western United States. Our team worked closely with the client and its legal counsel, conducting industry research, performing a site visit to assess operations, analyzing commodity prices, and reviewing financial statements.
As the opposing valuation expert had effectively valued the company at zero, our team was compelled to challenge their assumptions. Updating the financial forecasts based on recent historical performance and known opportunities combined with equipment and asset values demonstrated a more accurate view of current valuation. Despite the company’s limited and unprofitable operating history of only three years, our thorough investigation of its history and plans for future profitability enabled us to arrive at a more accurate and realistic valuation. Ultimately, the case settled for an amount that approximated MCA’s valuation of the company, highlighting our proficiency in valuation knowledge, dispute resolution skills, and mediation expertise.
Our team’s commitment to understanding the client’s business and its revenue and earnings opportunities, coupled with our objective analysis, resulted in a desirable outcome for our client. The settlement allowed our client to sell his interests for fair value, resulting in a positive outcome. At MCA Financial Group, we pride ourselves on delivering exceptional value to our clients; this case was no exception.