Valuation of Maritime Business
Are you looking for a valuation of your maritime business?
We give you a checklist of items we need such as financials, tax returns, contracts, vessels and descriptions, other assets, properties, vessel repair receipts, etc. We will also need information about any vessel rebuilds including the dates such work was performed. Have you refurbished any of your vessels? Are towing vessels Subchapter M compliant?
Maintenance:
What kind of maintenance logs have you kept? Notably, what kind of routine and non-routine maintenance has been performed on any of your vessels? Also, what are the engine hours since overhauls? How often do you perform routine maintenance? Even more specifically, were there extensive rebuilds, main engine replacements, propeller, tail shaft, cutlass bearing, rudder, and gearbox work; machinery and systems renewal, interior renewal, and hull plating renewal? Also, do you have any UTV ultrasonic thickness gauge readings of the vessels’ hulls?
What kind of navigational systems do your vessels have? Are they dated? What kind of safety equipment are they equipped with? Furthermore, do you have experienced crews to run them, and equally important, what kind of tenure do they have?
Additionally, we evaluate your revenues to determine your net operating income and use a NOI multiplier to determine your value. Subsequently, we evaluate your contracts for terms, annual revenues derived from each contract, the utilization as far as billable days, and the associated risk concentration.
Although these items are the main contributors, we still have not fully answered the question of how the valuation of your maritime business is achieved. Other factors to be addressed are outstanding loans and debt, the current market situation and economy, as well as the reputation of your company.
Call Barry at 954-448-2598 or email him at bfrette@maritimebusinessbrokers.com to discuss the valuation of your maritime business.