| Value your business |
|
Selling a business has two crucial
elements: finding potential buyers and
negotiating a price. It's essential to
make your own estimate of value at an
early stage so that you are clear about
the value you can expect to realise and
the most appropriate methods to manage
the sale. |
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| Key factors affecting the value of your business |
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There's a range of key factors that can
affect the value of your business. |
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| Finance |
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- Current, recent and projected
profits and cashflow.
- How well you control costs.
|
| External factors |
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- State of the economy in general
and your market in particular.
- How high similar businesses are
being valued.
- How many potential purchasers
are interested in the business.
|
| Intangibles |
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- Goodwill and intellectual
property such as patents.
- Strength of customer
relationships - and how profitable
they are.
- Your business' growth potential.
|
| Assets and liabilities |
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- Value of assets such as
property, equipment and
stock-in-hand.
- How full your order book is.
- Level of debt and other existing
liabilities.
|
| People |
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- The management's record of
success.
- How dependent the business is on
your own skills - and the likely
extent of your future involvement.
- Experience and commitment of key
staff.
|
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While some of these factors are outside
your control, you can take steps to make
your business as valuable as possible.
You need to start planning well in
advance. |
|
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But it's important to remember that any
valuation you and your advisers come up
with is subjective. Business owners
often place too high a value on their
business. In the end, the value of your
business is only as much as a purchaser
is prepared to offer. |
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We Can Help You!  |
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We can help you evaluate your business
for a very low price. You will gain
insight into the value of the business
by comparing reports from current
businesses for sale and business that
have already been sold. Price a Biz |
