Business valuation is typically carried out on the sale of a business. Both the seller and any prospective purchaser may decide to have a valuation made.
If the business owners are contemplating selling a business in the near future, they may wish to have a valuation made.
A valuation can also be carried out periodically for an ongoing business in order to better appreciate how the business stands in the marketplace and what how it is progressing. Regularly preparing a business valuation gives an incentive to make improvements.
Several approaches are used to arrive at a business valuation. Considering, for example, assets, earnings, cash flows and dividends. Comparisons are made to average multiples achieved in company sales in that market sector. Factors that are particular to the business are taken into account.
We provide a valuation service as a part of our business support service.