Valuing a business is an essential step when it comes to sell a business. Many elements have to be taken into consideration, and getting professional advice from experts may be necessary. You will find below a few of the elements you will need to consider when you decide to value your business.
Why should you get a business valuation?"
Although not knowing what your business is worth will not directly affect your ability to run the business, it's important to know the value of your business if you are considering retirement, if you want to sell your business to a competitor or keen new entrepreneur or if you are trying to get others to invest in your business to fund further expansion. Having an accurate impression of the value of your business puts you in a strong negotiating position in any of these situations, and will arm you with the market knowledge required to make the best decisions.
Can you value your business yourself?
Putting a value on your business in the current business for sale market is a highly complex process. There are many variables to consider, all of which will impact your business' true market value: turnover, profit and cash flow will all affect the selling price, as will the location of your premises, the industry or sector your business is involved in, the health of your local economy and local competitors to name a few. Ultimately, only you can decide the figure that you would be happy to sell your business at, but unless you have a great deal of experience buying and selling businesses, it pays to get a professional opinion of your business' market value.
Who can provide a business valuation accurately?"
Business Transfer Agents, Accountants and Chartered Surveyors can all provide you with business valuations - who you choose should depend on what you need the valuation for. If you want to sell all or part of your business, it's worth speaking to a selection of local or sector-specialist Business Transfer Agents to get an accurate sales value of your business. The valuations that these agents offer you will generally be free, on the basis that if you sell your business through the agent they will take a commission upon completion of the sale. If, on the other hand, you want to value your business for the purposes of securing a loan, company accounts or taxation, you can commission a Chartered Surveyor or Accountant to provide you with a professional valuation. You will have to pay for this valuation, but it will be an official document that you can present to your bank, investors and the courts if required.
How will a business transfer agent value my business?"
An agent will use their knowledge of the local market and their experience of previous comparable business sales to give you an accurate estimation of what your business will be worth. They will take into account your business' financial and geographic position, as well as buyer's demand for businesses of your type. In many cases, they may already have a number of potential cash buyers who have already interest in purchasing a business such as yours.
How much will you pay to get your business valued?"
You can request a business valuation for free online . The Daltons Business website offers a free business valuation service. Simply go to the business valuations request form, enter some basic details about your business and your details will be passed to a select number of key commercial agents who specialize in your sector and area. They will then they will call you with a free, no-obligation valuation based on recent completions and current market trends.
No comments:
Post a Comment