What is my business worth?
Before you decide to sell your business, you need to know what it is worth.
Choice Business Sales Consultancy is experienced in providing a Market Appraisal for your business. Generally in consultation with your accountant we will provide a market assessment of the current value of your business based on the performance of the business over recent years.
Matching the vendor’s expectations with the buyer’s expectations is often a difficult and complex process, involving a strong understanding of the keys business ratios and experienced negotiation techniques.
Businesses will linger on the market for months if not years. In most case the asking price for the business is not realistic to market expectations and interest.
The market appraisal is a short but very specific assessment of the market value of the business. The report provides a realistic assessment of the value based on the actual performance of the business and the associated risks involved. The assessment is made using the last 2-3 years financial accounts and an analysis of the risks and current trends of the business environment.
Return on Investment
When considering what a business is worth, there are many ways to establish a value, however one of the most important concepts the market will look at is “Return On Investment” (ROI). The ROI are the earnings a business generates from its operations including a working owner’s salary and before non-cash items and funding expenses. Other factors to think about when considering business worth include the value of stock, fixtures and fittings, plant and equipment, the strength of debtors, work in progress and existing contracts, some of which will be reflected in ROI.