The Intent
You want to know how value is determined when the business is not being sold but materially altered, often under time pressure or strategic change.
How I Solve It
I use the 25 Factors to identify which assets and intangibles are being moved, diluted, or reallocated. Factor #4: Return on Investment, Factor #5: Liquidity, Factor #21: Minority Interest, and Factor #24: Risk are central during restructuring.
The 5 Senses Inspection Report ensures the valuation reflects how the business actually operates at the restructuring point, not how it is described in planning documents.
Experience
It is vital because "How is a business valued during restructuring?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You receive a valuation that reflects real economic value at the moment of restructuring, protecting all parties involved.