Whether you are thinking about selling your sports franchise or you need a few new investors to come on board, it's always a good idea to have your franchise valuated. With the proper valuation, you may be able to tap into new opportunities that weren't previously available. Here are a few important considerations that will likely be made during the valuation process:
Acquisitions and Mergers
One of the first things a valuation company will consider when appraising your professional sports franchise is the acquisitions and mergers you've had a part in, since you've been the owner of the franchise. Have you acquired any licensing agreements, vendor stalls, or practice land? Have you merged with any companies that provide you with products for sale?
Any and all acquisitions and mergers will be looked at, so there is no point in trying to hide anything that you aren't particularly proud of. Create a spreadsheet, report for each instance, and explain the specific circumstances, so your valuation company has the insight they need to provide a non-biased appraisal as to whether your mergers and acquisitions are favorable or not.
Another important consideration your valuation company will make is whether you have shareholders, and if so, how your shareholder program is structured. Do your shareholders receive a check once a quarter, once a year, or once every five years? What are your shareholders' responsibilities and commitments to your franchise? What are your franchise's responsibilities and commitments to your shareholders? Set up a meeting between your shareholders and your valuation company, so everything can be hashed out quickly and no unwanted surprises will pop up when it comes time to actually sell or finance your sports franchise.
If you've never been through litigation as a sports franchise owner, you have nothing to worry about. But if litigation is in your past, be ready to be upfront about each instance, and make sure you provide your valuation company with all the paperwork you have. You should also connect your valuation company with your lawyer, so even the minute details aren't overlooked.
Just because litigation is in your past doesn't mean that you will suffer, when it comes time to sell or find investors. But being upfront about your past is the key to staying on top of any potential scandal that could come to light during the valuation process.
Contact a valuation company today to learn more about how the process works and how it can benefit your company when all is said and done.
For more information, talk to companies like Sports Value Consulting, LLC.