We have worked with Jay Abrams and his firm, Abrams Valuation Group, Inc., on a number of assignments. A recent acquisition in which we worked together involved tremendous time pressure, as the closing of a transaction of nearly $100 million depended on his valuation. We were attorneys for the seller in this transaction.
There was significant pressure from the buyer and some key people in the [seller's firm] for the latter to forego being paid for a certain asset that appeared to be worthless, i.e., to cede it to the buyer for nothing. Mr. Abrams' analysis showed that asset to be worth close to $1 million, and subsequent events have indicated his analysis to be correct. That enabled us to prevail in our negotiations with the buyer and get paid for the asset.
In the same transaction, the seller had been in research and development on a technology that would have led to a product that appeared to have significant value. The buyer was uninterested in that technology, as it did not fit in its business profile. Some members of the seller's management wanted to spin off the technology to its stockholders. . . . While we had only asked Mr. Abrams to value the technology, which he did, he provided us with additional analysis that made it crystal clear that pursuing the spinoff was really risking a net $9 million in transaction value to the seller. After seeing his report, the board of directors was able to come to swift, unanimous decision to jettison a project that was jeopardizing a $100 million sale and had far less value than we thought.
The team at Abrams Valuation Group, Inc., worked long hours at a very fast pace to comply with our short deadlines, and their work saved our client $10 million.
—H.A., Esq. (Name and firm withheld due to company policy)
In 1990, I was offered an opportunity to buy this business. To determine if that price was reasonable, I engaged Jay Abrams to value the business. After his initial work, without yet having the benefit of speaking to the seller, Mr. Abrams calculated a tentative value. At this point, he offered me a choice—he could take a slightly more passive role and merely write a valuation report for both buyer and seller to read, or he could actively work with the seller to explain his report and actually negotiate on our behalf. I chose the latter.
Initially, the seller initially was hostile and did not appreciate an expert telling her that her business was worth less than one-quarter of her offering price. However, Mr. Abrams worked with the seller to educate her in how an expert values a business and showed her how to impact the valuation by refining and improving the assumptions. The bottom line is that I bought the business for 30 percent of the offering price. I was delighted with Mr. Abrams' skills in valuation, education, and negotiation. I can heartily recommend his as a business valuation expert.
—John Pullen, Ph.D., Center for Help for Anxiety/Agorophobia through New Growth Experiences (CHAANGE)
I recently had the opportunity of working with Jay Abrams and his firm, Abrams Valuation Group, Inc., on a most difficult situation. I originally engaged AVGI to value stock in my company for income-tax purposes. On very short notice, the valuation evolved into a much broader and more in-depth analysis, as it quickly became necessary to do a major restructuring of the ownership of the company.
Jay Abrams and Chaim Borevitz worked rapidly to identify the new key issues and produced the required analysis within a matter of days. I would gladly recommend Abrams Valuation Group, Inc. for your valuation services.
—Peter D'Almada, CEO, Randall International
I engaged Abrams Valuation Group, Inc., to develop a quantitative valuation model to assist us raising capital for our biotechnology company. Jay Abrams and Chaim Borevitz worked late hours at a breakneck pace to accomplish the assignment on time at a reasonable cost. Most importantly, we raised our capital at an appropriate valuation during the worst capital markets in the past decade.
Jay and Chaim developed a high-level financial model that had clarity in content and presentation. Additionally, in the process Jay invented what I understand is a new quantitative technique to accurately calculate the effects today of dilution in investor ownership that will occur from future rounds of funding. This sophistication and accuracy was necessary to convince venture capitalists and sophisticated investors to fund our company.
After producing the valuation, Jay put in close to one week to verify and test the accuracy of his new technique—time for which he was not getting paid. It was clear to all involved that he cared far more about the accuracy and quality of his work than he did about how much he was being paid. His honesty and integrity impressed everyone involved. I can recommend Abrams Valuation Group, Inc. without any reservations whatsoever. I seriously doubt we would have raised the capital we needed in this environment without their input.
—Jeffrey Segal, M.D., President and CEO, DarPharma, Inc.