Business Valuation - What is your business worth and why?
Visit our sister website www.businessvaluationreport.co.uk to learn more about our specialist business valuation services.
In the meantime... the first step toward successfully selling your business is appraising what your business could be worth and why. Regular business valuation should be part of any business planning or strategic review. You'll be very surprised by what you'll learn and even how you can make your business worth significantly more than it is today.
Every year we conduct hundreds of business valuations and appraisals on behalf of our clients, solicitors and accountants. The reasons behind having a valuation vary and are illustrated below. However, one characteristic prevalent in all of them is the need to present an accurate account of a business’s value for: future planning, peace of mind and with a view to a possible exit.
Motivation for a valuation can include:
- Buying or selling a business.
- Insurance purposes e.g. Director life insurance or Key Man policies.
- Helping raise finance for expansion.
- Succession planning.
- Courts or legal advisers for divorce or probate.
- Partner/Director disagreements.
- Tax planning.
- A Management buy out.
- Shareholders or partners in the case of a buy out or dispute.
- Business planning and strategy.
Many businesses on the market in the UK never sell. This is principally due to incorrect value or price expectations.
Buyers, accountants, bankers, lawyers and any other professionals will not take your business seriously if it is not properly valued. You will lose credibility and can significantly damage your negotiating position. A valuation report sets out a genuine level of expectation for all parties and should examine and highlight all the issues which can have a major impact on your business.
It is possible to accurately value a company through in-depth analysis of the financials alongside knowledge of marketplace activity and benchmarking the performance of related businesses in the sector.
Doing a beer mat calculation with basic multiples is very unlikely to hold any weight opposite finance professionals or seasoned buyers. Buyers will place little credibility in a value arrived at by your accountant or bank manager.
A valuation must look beyond the basic numbers and analyse the off-balance sheet factors which can play a major part in determining value. This is a standard part of our valuation/appraisal report.
So, how can we help YOU?
Call 0845 644 0266 or 01225 460777 for a free appraisal of your business today.
Contact us to discuss your requirements, or arrange an appointment with one of our directors.
Join one of our mailing lists for news, new opportunities and relevant updates.
Learn more about selling or buying a business.
Visit our sister website www.businessvaluationreport.co.uk for our specialist valuation services.
