July 24, 2013 • by Chris Parisi, Allegiance Capital • Bookmark +
Business valuations are often mythical, based upon hearsay or rumors of the most recent sale in the industry. To learn more about their company’s worth, many business owners get a professional business valuation, but these are less important than you might think. A valuation is just a snapshot of a company’s value, based on its financial statements, at a specific point in time. Valuations can change quickly and dramatically based upon changes in the economy, the industry, technology, the owner’s health, and the market for the product or service being provided. The bottom line is that your company is worth what a specific buyer in the open market is willing to pay for it. Business valuation services – are they worth the cost? There are companies who provide business valuation services. Independent business appraisers and financial analysts actively sell their valuation services, and if needed, they can be very useful. However, you should always check their qualifications. Each of the three major United States valuation societies — the American Society of Appraisers, American Institute of Certified Public Accountants, and the National Association of Certified Valuation Analysts — has its own set of Business Valuation Standards, which it requires all of its accredited members to adhere to. There are also firms that conduct seminars on how to value your business. Some of these promise to help sell your company after the seminar. These seminars are expensive, and the main objective is to charge the business owner for the valuation. Ultimately they sell very few businesses, because they make more money doing valuations. When is a professional valuation useful? A well done business valuation can cost from $30,000 to $50,000, so before you spring for one, make sure you understand what the purpose of the valuation is. There are times when a valuation is necessary and valuable:
When the owner does estate planning
When one owner wants to buy out another
When family members wish to be bought out
When assets must be redistributed such as during a divorce
When securing loans from a bank or other lender
But when you’re thinking about selling your company, a valuation may not be the most reliable indicator of what you can get in the marketplace. The best way to optimize the price you get for your company is to select a firm to represent the company in its sale, and they will work with you to determine the value of your company based upon the most important factors valued by buyers. What determines company value? 1. Timing
In some industries, values can change dramatically in a very short period of time. For example, some tech companies have been valued in the billions, only to sell for a fraction of that a few months later due to changes in technology, the marketplace, etc. Products, programs and services change with the needs and demands of the times. A valuation done 6 months ago may be worthless today. 2. The marketplace is king! The market for your business changes almost daily. New competitors coming into the market impact the value of your business. If you develop new technology or new technology replaces your services the value of your company changes. The market drives company values. Therefore, buyers pay little attention to a valuation purchased from an independent appraiser. They will do their own due diligence and determine what they are willing to pay for the company, based on their own criteria. Most purchased valuations do not take into account the ever changing marketplace. An uneducated seller, acting alone, is at the mercy of buyers, because normally, they have not calculated the impact of the marketplace. This results in both unrealistic valuations on both the positive and negative sides of company value. 3. Buyers determine value based upon their own needs
Different buyers look at the same company differently. Strategic buyers may see more value in a company that fits into a growth strategy. Strategic buyers also bring leverage from  economies of scale, established sales teams, customer relationships, and distribution channels. For example, a European company looking to expand in the U.S. may be willing to pay a premium for the right company. Financial buyers, such as private equity groups, target companies with the most potential to generate a high ROI for their investors. Therefore, their target companies must meet specific fund criteria. [jjl1]  They may offer more for a company that “fits” their perfect target criteria, because they know the industry and have more experience in successfully managing companies in that industry. 4. The auction process yields the best results
An auction process in the market can also increase company valuation. When a company is represented by a well-known, experienced investment banker, buyers know they are working with a firm that has done research to determine the market value of the company. The final price will also be influenced by the marketing process used, which brings several buyers to the table and forces them to compete on price, concessions, and deal structure. Managing the process, controlling buyers and putting them in an auction-style scenario secures a premium price. The business valuation has nothing to do with the final price paid for the company. As an owner, your objective should be to secure the best price and terms that ideally meet your personal objectives. The auction process, managed by an investment banker, ensures you maximize your value in the market. Prepare now to improve your valuation opportunity
The value of your company will be driven by the market and by the avenue you select to promote the sale to potential buyers. However, before you begin the valuation process, it is important to prepare your company for sale. This is more than just mowing the front yard or painting the building. Ensure that you have clean, audited financial statements. Eliminate any legal issues that may be lingering in the background. Address any environmental issues that exist and ensure you have a solid team in place that will be attractive to potential buyers. Then you will be in the best position to sell your trucking company at the time you want, for the best possible price. Chris Parisi is managing director of Dallas-based Allegiance Capital Corp., a M&A investment bank dedicated to private middle market businesses. Related Articles:

How Much is Your Trucking Company Really Worth?

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DALLAS, Sept. 9, 2019 /PRNewswire/ --  Allegiance Capital Corporation , a Dallas, Texas-based middle-market M&A investment bank, has been announced as a finalist for the "Information Technology Deal of the Year" and "Corporate/Strategic Deal of the Year" by The M&A Advisor , a leading organization founded in 1998 that recognizes excellence, honors achievement, presents thought leadership and facilitates connections among the world's leading M&A professionals. The winners of the 18th annual M&A Advisor Awards will be announced at the Awards Gala on Tuesday, November 19th at the New York Athletic Club. This year's finalist accolades for both the "Information Technology Deal of the Year" and "Corporate/Strategic Deal of the Year" is represented by dealmaker Todd Viegut , Managing Director at Allegiance Capital. Additionally, Viegut is also a finalist for "Investment Banker of the Year." "It's an honor to be named a Finalist in multiple categories for a second year in a row," said Viegut. The transaction for which Allegiance is nominated for is the acquisition of RPM Software by ScanSource. "This was a very hands-on, roll-up your sleeves transaction, but through our diligence, consistent communication and education, win-win negotiations, and a structured process, we were able to find the right strategic partner, and are pleased that we are being recognized for our hard work," continued Viegut. "The strategy that was used by Todd Viegut of Allegiance Capital was very well planned out and was precisely how we saw the industry. The way he approached the process led to a very favorable and appropriate outcome," said Roger Balm, CEO of RPM Software. Connie Mahmood , Co-founder of Allegiance Capital added, "We are thrilled to be recognized for the successes that we achieve for our clients. These accolades showcase our ability to deliver exceptional results by personalizing each and every transaction to achieve the ultimate outcome our clients deserve." Mahmood continued, "We are very proud of Todd Viegut who exemplifies a top performing dealmaker by his client-centric commitment, work ethic and strategic execution." About Allegiance Capital Corporation
Allegiance Capital is an M&A investment bank that has been providing expert financial services to mid-sized, privately-held companies since 1998. Our clients are business owners, partners, families and entrepreneurs who want to sell their company, transition to new management, or bring on a financial partner to grow their business. Allegiance Capital employs investment bankers who understand the challenges business owners face in running their business and can prepare those owners for the complexities of the sale process. Allegiance Capital also offers global reach through its membership in Globalscope Partners , an organization of international M&A Advisors. SOURCE Allegiance Capital Corporation

Allegiance Capital Announced as Finalist for "IT Deal of the Year" and "Strategic...

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DALLAS, Jan. 17, 2019 /PRNewswire/ -- Allegiance Capital Corporation , a Dallas, Texas-based private M&A investment bank that specializes in middle-market transactions, is pleased to announce three personnel promotions effective January 15, 2019. Shane Mahmood has been promoted to President, Eric Kern has been promoted to Managing Director, and George Burrell has been promoted to Vice President. Shane joined Allegiance Capital in 2012 after completing a tour of duty in the United States Army where he served in the 101st Airborne Division during Operation Iraqi Freedom. Upon completing his degree in finance from Cameron University, Shane joined Allegiance Capital's Business Development group. Shortly thereafter, Shane was tasked with modernizing the company's business development IT platform. In his seven plus years with Allegiance Capital, Shane has held a variety of positions with the firm, each with increasing responsibility. Specifically, he has held such positions as Director of Business Development, where he was instrumental in developing the backbone of Allegiance's modernized IT platform that synthesizes a wide array of proprietary and third party research and data products. Most recently, Shane held the position of Senior Vice President of Sales Operations where he managed the business development services group, marketing and public relations departments and oversaw the firm's cloud services utilization. His ability to work with the firm's in-house business development personnel to develop prospects as well as work with the private equity and strategic acquirers to locate deal flow was clearly instrumental in Allegiance Capital being ranked 5th among regional investment banks in 2018. Eric Kern joined Allegiance Capital as a Vice President in 2006. He has over 20 years of experience in investment banking and commercial banking. During that time he has facilitated, advised, or closed on over $850 million in transactional value involving privately-held and closely-held businesses. Additionally, Eric has led and closed several international sale transactions as well as public company strategic acquisitions. Prior to Allegiance Capital, Eric spent 11 years with Bank of America and other national and regional banking institutions where he was consistently recognized among the top 5% of his peer group. Eric holds an MBA from Washington University in St. Louis where he was distinguished among his peers for the Highest Award for Achievement for demonstrating intelligence, integrity, loyalty and high standards of personal conduct; he holds a BS in Finance from Southern Illinois University where he graduated summa cum laude and was recognized by the faculty as the outstanding finance student. George Burrell joined Allegiance Capital as a Business Development Officer in 2016, bringing with him 30 years of expertise in business organization and development, and troubleshooting existing businesses. His career has been prolific and diverse, having helped salvage, grow and sell numerous companies in industries including aviation, oil and gas, medical, IT and more. George has a strong working knowledge in almost all aspects of running a small business, from organization and fundraising to daily operations and management, enabling him to closely relate to clients. Prior to Allegiance Capital, George was the Founder and President of a regional oil and gas operator and producer with over 150 wells in Kansas and over 70 wells in Texas. George sold his company in 2014 at the peak of the market just prior to the oil market decline of 2014-15. "Allegiance Capital and its Board of Directors are pleased to welcome Shane to the firm's executive suite and congratulate Eric's and George's promotions on the investment banking team," said Connie Mahmood , Co-founder and Chairperson at Allegiance Capital. "The wealth of experience and execution excellence from our team members provides us the human capital required to help privately-held and closely-held companies achieve their business succession and financial goals." About Allegiance Capital Corporation
Allegiance Capital is an M&A investment bank that has been providing expert financial services to mid-sized, privately-held companies since 1998. Our clients are business owners, partners, families and entrepreneurs who want to sell their company, transition to new management, or bring on a financial partner to grow their business. Allegiance Capital employs investment bankers who understand the challenges business owners face in running their business and can prepare those owners for the complexities of the sale process. Allegiance Capital also offers global reach through its membership in Globalscope Partners , an organization of international M&A Advisors. SOURCE  Allegiance Capital Corporation

Allegiance Capital Announces January Promotions

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DALLAS, Jan. 17, 2019 /PRNewswire/ -- Allegiance Capital Corporation , a Dallas, Texas-based private M&A investment bank that specializes in middle-market transactions, is pleased to announce three personnel promotions effective January 15, 2019. Shane Mahmood has been promoted to President, Eric Kern has been promoted to Managing Director, and George Burrell has been promoted to Vice President. Shane joined Allegiance Capital in 2012 after completing a tour of duty in the United States Army where he served in the 101st Airborne Division during Operation Iraqi Freedom. Upon completing his degree in finance from Cameron University, Shane joined Allegiance Capital's Business Development group. Shortly thereafter, Shane was tasked with modernizing the company's business development IT platform. In his seven plus years with Allegiance Capital, Shane has held a variety of positions with the firm, each with increasing responsibility. Specifically, he has held such positions as Director of Business Development, where he was instrumental in developing the backbone of Allegiance's modernized IT platform that synthesizes a wide array of proprietary and third party research and data products. Most recently, Shane held the position of Senior Vice President of Sales Operations where he managed the business development services group, marketing and public relations departments and oversaw the firm's cloud services utilization. His ability to work with the firm's in-house business development personnel to develop prospects as well as work with the private equity and strategic acquirers to locate deal flow was clearly instrumental in Allegiance Capital being ranked 5th among regional investment banks in 2018. Eric Kern joined Allegiance Capital as a Vice President in 2006. He has over 20 years of experience in investment banking and commercial banking. During that time he has facilitated, advised, or closed on over $850 million in transactional value involving privately-held and closely-held businesses. Additionally, Eric has led and closed several international sale transactions as well as public company strategic acquisitions. Prior to Allegiance Capital, Eric spent 11 years with Bank of America and other national and regional banking institutions where he was consistently recognized among the top 5% of his peer group. Eric holds an MBA from Washington University in St. Louis where he was distinguished among his peers for the Highest Award for Achievement for demonstrating intelligence, integrity, loyalty and high standards of personal conduct; he holds a BS in Finance from Southern Illinois University where he graduated summa cum laude and was recognized by the faculty as the outstanding finance student. George Burrell joined Allegiance Capital as a Business Development Officer in 2016, bringing with him 30 years of expertise in business organization and development, and troubleshooting existing businesses. His career has been prolific and diverse, having helped salvage, grow and sell numerous companies in industries including aviation, oil and gas, medical, IT and more. George has a strong working knowledge in almost all aspects of running a small business, from organization and fundraising to daily operations and management, enabling him to closely relate to clients. Prior to Allegiance Capital, George was the Founder and President of a regional oil and gas operator and producer with over 150 wells in Kansas and over 70 wells in Texas. George sold his company in 2014 at the peak of the market just prior to the oil market decline of 2014-15. "Allegiance Capital and its Board of Directors are pleased to welcome Shane to the firm's executive suite and congratulate Eric's and George's promotions on the investment banking team," said Connie Mahmood , Co-founder and Chairperson at Allegiance Capital. "The wealth of experience and execution excellence from our team members provides us the human capital required to help privately-held and closely-held companies achieve their business succession and financial goals." About Allegiance Capital Corporation
Allegiance Capital is an M&A investment bank that has been providing expert financial services to mid-sized, privately-held companies since 1998. Our clients are business owners, partners, families and entrepreneurs who want to sell their company, transition to new management, or bring on a financial partner to grow their business. Allegiance Capital employs investment bankers who understand the challenges business owners face in running their business and can prepare those owners for the complexities of the sale process. Allegiance Capital also offers global reach through its membership in Globalscope Partners , an organization of international M&A Advisors. SOURCE Allegiance Capital Corporation

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DALLAS, Nov. 29, 2018 /PRNewswire/ --  Allegiance Capital Corporation , a Dallas, Texas-based private M&A investment bank that specializes in middle-market transactions, is pleased to announce that Co-founder and Chairperson, Connie Mahmood , has been honored among the Top 500 Most Powerful Dallas Business Leaders by D-CEO Magazine . D-CEO's Top 500 edition provides a personal, up-close look at some of the most influential business leaders driving economic growth in Dallas-Fort Worth. Over the past 20 years, Connie has been a prominent figure and tremendous resource to peers and businesses alike in the Dallas-Fort Worth region. Having co-founded Allegiance Capital alongside her late husband David Mahmood in 1998, the firm's focus was and is to provide entrepreneurs with an investment banking partner that can relate to their entrepreneurial spirit as well as bring Wall Street level experience to help these entrepreneurs monetize their life's work. With over three decades of experience ranging from bulge bracket financial services companies, like Barclays , to high technology and software development businesses, Connie has been integral in creating and building organizational teams that excel in completing complex M&A transactions. Connie lends her professional experience to organizations like the Association for Corporate Growth ( ACG ) having served as the President of the Dallas-Fort Worth Chapter. She is also a former board member of the Turnaround Management Association ( TMA ), Dallas Chapter, and is a founding board member of the Women's Finance Exchange . "I am deeply honored to be named as one of Dallas' most powerful business leaders," said Connie. "In an extraordinary city like Dallas, which is a top 5 U.S. growth market, it is truly a testament to the strength of the Allegiance Capital team who support me daily. Like many of my peers, my success and recognition is built upon the efforts of those I manage." About Allegiance Capital Corporation
Allegiance Capital is an M&A investment bank that has been providing expert financial services to mid-sized, privately-held companies since 1998. Our clients are business owners, partners, families and entrepreneurs who want to sell their company, transition to new management, or bring on a financial partner to grow their business. Allegiance Capital employs investment bankers who understand the challenges business owners face in running their business and can prepare those owners for the complexities of the sale process. Allegiance Capital also offers global reach through its membership in  Globalscope Partners , an organization of international M&A Advisors. SOURCE Allegiance Capital Corporation

Connie Mahmood Honored as Dallas' Top 500 Most Powerful Business Leaders by D-CEO

Infinity Financial Group is an independently owned firm that provides service in financial planning and investing. It is based in Baton Rouge, Louisiana.

Infinity Financial Group

Allegiance Capital Corporation , an investment bank that provides M&A advisory and capital-raising services to privately-held , middle-market companies , announced today a professional alliance with Infinity Financial , a boutique investment bank with offices in Texas and Oklahoma .

Infinity Financial Group Allies With Allegiance Capital
Home → Press Releases → Allegiance Capital, Infinity Financial Form Professional Alliance Aimed At Expansion In Energy Sector, Corporate Finance.

Acquired

Allegiance Capital was a Financial/Investment Banking company based in Huntington Beach, California. Allegiance Capital was acquired in 2002.

Date	1/18/2002
Round	Acquired
Amount
Investors	Macquarie Capital, and Rosemont Investment Group
Valuation
Revenue	0 FY undefined
Sources

First funding	Last Funding	Investor	Rounds	Board Seats	Type	Location
1/18/2002	1/18/2002	Rosemont Investment Group	1 Acquired		Private Equity	Pennsylvania
00/00/0000	00/00/0000	Macquarie Capital	Subscribe to see more		Asset/Investment Management	Australia

First funding	1/18/2002	00/00/0000
Last Funding	1/18/2002	00/00/0000
Investor	Rosemont Investment Group	Macquarie Capital
Rounds	1 Acquired	Subscribe to see more
Board Seats
Type	Private Equity	Asset/Investment Management
Location	Pennsylvania	Australia

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