How much is your business worth? There are different approaches toward valuing a business, the most common ones being discounted cash flow valuation and earnings based valuation. However, no approach is absolute and without limitation.
A 'valuation' is the process of determining the current worth of an asset or company and may be required for any number of reasons, the most common of which are:
- Transfer of shares to a trust
- Matrimonial separations
- Purchases and sales of businesses.
Your business may be one of the biggest assets you or your family ever own, so it is essential for you to have an idea of what it is worth. This will bring significant benefits to many aspects of your business operation, especially when buying or selling.
Our experienced business valuation consultants will work with you to ensure they really understand your business and apply the most appropriate approach for an objective result, including:
- Purchase price allocation for business acquisitions
- Impairment testing to ensure the value of goodwill has not been adversely affected by market factors
- Investments held at market value to provide greater assurance regarding key assets on the balance sheet
- Tax valuations to assist in negotiations with tax authorities or to manage the tax implications resulting from ownership changes
It is important that your business valuation can stand up to scrutiny from different parties. This can only come from thorough analysis by a knowledgeable and experienced valuer.
No matter what’s on your mind, whether it’s acquisitions, selling, merger, restructure, business succession, or any other business valuation need, we can help.
8 in 10 business owners want to value and benchmark their business
FREE Business Capitalisation Rate Calculator
Why - many business owners regard their business as their “Superannuation”. That is, they are expecting the proceeds of the sale of their business to fund their next business venture or retirement.
Unfortunately, most business owners believe their business is worth more than what it actually is. As a result, many are not only disappointed when their business fails meet their price expectation but they also have a shortfall of funds to support their retirement.
We encourage you to complete (1 minute) our complementary Business Capitalisation Rate Calculator below. The 10 question survey will help you to identify and assess key risks in your business. Once you have completed the survey, you will receive a personalised Business Capitalisation Rate Calculator Scorecard.