Business Valuation

The Valuer business valuation software has been developed to answer that fundamental question "how much is your business worth?"

Businesses are bought and sold for a variety of reasons. For buyers the motivations can be some of the following:

• Access to a new market or better share of an existing market
• New or complimentary technology
• New labour force with better or different skills base
• Property assets
• Synergies between two businesses
• Consolidating a mature market
• Management buying a retiring owner's interest or a subsidiary of a larger group

For a seller the reasons are equally diverse:

• Retirement of an owner
• Disposal of a business that is too small or does not fit the strategic direction of a larger business
• Selling a business that simply does not have a critical mass
• Getting out of a business where competition is eroding margins and giving returns below the level acceptable to the owners

Regardless of whether you are a buyer or seller however, the key objective of the transaction is to realise the fair value for the business. For sellers, this is the best price for the business. For buyers, a price that reflects the ability of that asset to give an acceptable return on the capital used to buy it.

Once the decision to purchase or sell has been made, how do you find the value of the business?