If you are planning to exit your business in the future, you need to start maximising the value of your business years in advance. A valuation will provide a strategic plan for the development and improvement of your business so you can obtain the required business value by the time you exit.

Do you know the true market value of your business and the factors that contribute to it’s value?

When we value a business, we consider it’s financial data along with budgets and cash flow to work out where they currently sit and model where this will take them. We also compare them to industry averages to make sure they’re in line with what we’d expect. All this combined gives us a value. From there, business owners can decide if it’s enough to meet their wealth creation needs, or if we need to work on improving value to get a better end result.

This valuation methodology is not only useful for selling a business, it can also be useful for other purposes. For instance, to determine the impact of introducing or discarding product lines.