Valuations

The valuation of a business can be required for a wide variety of circumstances, including:

• Business acquisitions
• Business sale or grooming a business for future sale
• Exiting minority or majority shareholders, or resolving shareholder disputes
• Introduction of new shareholders
• Employee incentivisation plans

To assess the value of a business, a number of factors need to be considered including, inter-alia: future potential profit trends, historical track record, quality of earnings, reliance on key customers, cash and debt position, net assets and property values, the purpose of the valuation etc.

Whilst valuations can be subjective there are a number of rules of thumb that can be applied: the key to an accurate valuation is having the experience to apply these rules appropriately.