what's your business worth

The real test of the value of a business is what a willing and informed buyer would be prepared to pay for it. Valuing a business is an art rather than a science. A number of formulas can be used to indicate a valuation but ultimately it comes down to the buyer themselves. Potential purchasers also have the option to carry out their own valuation before making an offer which often differs from the seller’s expectations.

Values of business can be affected by a number of aspects including:

• timing of sale
• general economic and market conditions
• conditions specific to its industry and how defensible its position is within that industry
• the development stage of the business
• condition of the business
• the growth stage
• the future potential
• the management team
• attractiveness to a buyer
• the potential for synergies 
• strategic benefits

It is, however, difficult to account for all of these factors when valuing a business; some information will be purchaser confined and some not even relevant. We can help guide you through the valuing process, answering any questions you might have about how certain value figures have been calculated.