CREDENTIALS: We, at EFCG, believe ourselves to be the premier specialty valuation/appraisal firm in the U.S. for environmental, infrastructure, transportation and water and wastewater e/c firms. The confidence in our strength lies in our understanding of the financial and qualitative components of the e/c business and industry. Our specialty is to work with a management team or an independent board of shareholders, or trustees, to develop an approach to valuation which makes sense, given the objectives to be achieved, and to provide such valuation services over time. We are currently performing yearly (or quarterly) valuations for approximately twenty firms. In addition, we have performed ad hoc valuation services for some 100 other e/c firms. We would be glad to provide you with references from any of these firms. USES OF VALUATIONS: Internal Ownership Transfer Processes: Some firms establish their internal stock transfer values at book value; some use a formula value (such as a multiple of book, or book value plus some earnings' factors). There is no right or wrong way (e.g. Book Value may undervalue your investment, while a formula value by its nature is totally rigid, as one-time aberrations may create temporary and unintendedly high or low values). Consequently, for establishing periodic internal transfer valuation, independent valuation by a knowledgeable valuation expert as ourselves, may be your best option. Furthermore, we can help you to better understand your capital flow needs, how valuation can impact those needs, and help you design an approach to valuation that is consistent with your longer term needs and objectives, and we can provide the valuations on a reliable basis going forward. ESOP Valuation: If you are currently utilizing an ESOP ("Employee Stock Ownership Plan"), or if you are considering the use of an ESOP, you will need to have an independent valuation. We provide such valuations. While, technically, any ESOP appraiser can provide ESOP valuations, we believe that an appraiser specializing in the e/c business can provide a far more reliable valuation, and one that is more consistent with achieving your objectives than an appraiser who may "specialize" in "ESOP" valuations, but not the e/c industry. It is our view that one cannot value a personal services or e/c business using the same metrics as for a manufacturing, technology or retailing business. Phantom Stock/Stock Appreciation Rights (SAR's)/Stock Options and Other Incentive Plans: If you are currently using, or are thinking of using, a stock derivative instrument (such as Phantom Stock, SAR, Stock Options, etc.) to incentivize your employees, you are probably going to need a third-party, objective, periodic valuation of your firm. We are currently working with a number of e/c firms to provide such valuations. M&A Valuations: If you have ever wondered what your firm would "sell for" in a "merger" or "acquisition" context, we believe no appraiser can provide you a better, more realistic understanding than we can of what you are "worth" - or what steps you might take to enhance that worth. We believe we are the most experienced M&A expert with respect to the e/c industry. We've been involved with over fifty M&A transactions in this field. We can help you better understand what your "M&A" value is in today's marketplace - and how to improve it. We can also help you realize that value, if that is your objective. Having an annual evaluation of that potential might not be a bad idea -- as well as knowing how to improve it - in order to someday realize that full value. Public Market Valuations: At some point, some of you may wish to take advantage of the public equity markets. Knowing what your valuation might be in that context could, therefore, be helpful in better understanding that option. To some extent, you might want to take such valuation into consideration in establishing periodic internal valuation - probably, however, taking into consideration certain appropriate discounts for the additional cost of being public and/or the relative lack of liquidity to which you, as a private firm, might be subject. Third Party Valuations - for Arbitration, Mediation or Independent Viewpoints: When a divestiture, split up, or merger occurs, it may be helpful to have a knowledgeable, experienced and independent third party help establish the respective values of the entities. "Fair-Market Value" Confirmations: Boards of Directors or trustees frequently want to be sure that the valuations being used -- whether they are based on a simple or complex formula, or any single or set of financial parameters -- reflect true "fair market value" ("FMV"). With our knowledge of and experience in mergers and acquisitions in the e/c arena, our on-going periodic analysis of the public company e/c firms, and our valuation work for so many e/c firms, we feel we are in a uniquely strong position to provide such assurance to fiduciarily-sensitive entities. Estate Tax Appraisals: Frequently, third party valuations are required, or can be helpful to substantiate tax valuation. We generally believe that when a significant principal's estate needs to be valued, such valuation should take into consideration the potentially severe negative impact that such person's termination or demise might have, with respect to the value of such entity. In fact, book value, as conservative as that might frequently be, may well not represent a real "floor" in valuation, since if liquidation were ever required in such circumstances, the likelihood of realizing full book value could well be significantly compromised. Benchmarking: An annual or periodic valuation may well be a helpful exercise for evaluating management's performance. This can be even more effective when combined with a periodic "Peer Analysis", wherein we compare your firm's performance along roughly a hundred financial metrics, with thirty or forty of your most comparable peer firms. |
