The two questions 'How much is your business worth?' and 'How can you make it more valuable?' are of paramount importance to any business owner.
This briefing summarises the main issues involved. It is aimed at anyone buying, selling or simply running a business, who needs to understand how businesses are valued.
The worth of a business hinges upon how much profit a purchaser can make from it, balanced by the risks involved. Past profitability and asset values are only the starting points. It is often intangible factors, such as key business relationships, which provide the most value.
The briefing outlines :-
- The uses of valuation.
- Key factors affecting the value of your business.
- The standard methods of valuation.
- How to calculate profit for the purpose of valuation.
- Why value the business?
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