VALUATION SERVICES FOR ANY TYPE OF BUSINESS

As business brokers, we are involved daily in the practice of determining what a business is worth for the purpose of general sale. However, often valuing a business can be required for more complex reasons. Formal valuations for the purposes set out below require a particular methodology to satisfy court requirements or other corporate governance demands.

• court/legal dispute
• partnership break-up
• family settlement
• selling a business
• buying a business
• tax planning
• retirement options
• estate planning
• share transfer
• restructuring
• finance application

The methodology we adopt depends on the circumstances of the business.
If it is making a profit, then we might use the Future Maintainable Earnings Method, where we choose a multiplier of income to come up with value. Alternatively we can use a Discounted Cashflow Method, where we forecast future cashflow and value those cashflows as at today’s date. Either of these methods are acceptable. If we can’t find profit in the business, and there is a poor return to the owner, then we will adopt an Asset Valuation Method.

If you are an accountant wanting a business valuation or a business advisor wanting a business valuation, then you will be very interested to hear about our information request process. This is where we take the time to gather the information, saving you the time. You put us directly in contact with your client and we send them a request for the information that we are seeking. if you are the accountant for the client seeking the valuation, your only involvement would be to provide us with the financial information that we need to be able to properly undertake the business valuation.

In any case, we will compare the value we come up with, against similar businesses we have sold or know have been sold. This is the Market Method and is also a good check method against the other methods. Either way, BCI will use a methodology that is right for the assignment. Our rates for business valuation services are most competitive and we are happy to sit down with you to discuss a quotation for the work at no obligation or cost to you.

A business only has value if somebody outside the current owner would want to acquire that business. We understand that a business will have value according to 3 key principles. These principles are profitability (provable), maintainability and transferability.