FAQ
Questions most often asked by business owners and their trusted advisors:
Why Chinook?
Chinook provides a differentiated approach for clients requiring M&A advisory services. Our unique value proposition can be found in the quality of our team, our relentless focus on serving Pacific Northwest business owners, and our proven track record of success.
Team Approach
- Relevant careers in professional M&A roles and business valuation expertise
- Diverse degrees including accounting, finance, engineering, and juris doctor in law allows every client to benefit from the full resources of our entire team
Industry Expertise
- Experience guiding owners from various industries including manufacturing, distribution, business services, technology, healthcare, and consumer products
- Deep investor relationships with industry-specific private equity groups and strategic market players
Local Focus
- We exclusively focus on privately-held businesses based in the Pacific Northwest
- We work as one local team for each client and care about your legacy and our reputation because this is our home
Proven Results
- We act as your trusted advisor and hold your hand through each step – from the beginning to the end of the process
- Over 50 years and 100 completed transactions of experience
How do I determine the value of my business?
We’ve written several articles to help business owners understand the business valuation process:
- What the heck is adjusted EBITDA and why is it so darn important?
- Of Course, Enterprise Value = EBITDA x the Multiple… Uh, So What’s the Multiple?
A business’s value is based on the amount of financial benefits that it’s expected to generate in the future. To predict the future financial benefits of your business, you can either calculate the present value of expected future cash flows, or you can rely on recent past performance. The method of relying on recent past performance to predict future financial benefits is quite common in private company valuations and is calculated by multiplying pre-tax operating income, or EBITDA, by a valuation multiple.
EBITDA X Multiple = Enterprise Value
EBITDA = earnings before interest, taxes, depreciation, and amortization
EV / EBITDA Multiple = commonly used business valuation multiple, determining whether a company is “overvalued” or “undervalued” compared to the market.
Enterprise Value = the sum of the market value of equity and the market value of debt of a company, less any cash.
How long does it typically take to sell a business?
A typical sale process takes between six and eight months. There are six primary phases in a typical sale process, from pre-sale preparation to closing activities.
How will I be charged for Chinook's services?
Chinook uses a simple fee structure. There is a monthly retainer spread over 4 months and a success fee calculated as a percentage of the deal value, net of monthly retainers. The Chinook team receives the success fee when you are paid.
Monthly Retainer + Success Fee
How can I avoid risk and build value, while trying to sell my business?
We work with business owners to build value prior to beginning the sale process.
Here are the common steps for building value and avoiding risks in preparing for the sale of your business:
What Our Clients Have To Say
I was greatly impressed by the wide spectrum of support and services Chinook was able to deploy throughout the process – from learning the many nuances of our business, to finding well-matched suitors, to managing and navigating the complex stages of closing the deal. They have a true full-service organization and it seemed that every bit of that capability was needed to get over the finish line.
