The Value of Independent Business Valuation:

The Purpose of a Business Valuation

• The purpose of a business valuation affects the actual number derived, and clarity on the purpose of the business valuation is essential.

• Common scenarios where independent valuation is useful:
  • Family Law
  • M & A’s
  • Business Restructure
  • Buyouts
  • Planning to sell
• A formal, independent, written valuation contributes to strategic planning and helps decision-making.

Unveiling the True Value of Your Business

• There are hundreds of factors considered during a comprehensive business valuation – both Financial and Non-financial – our Due Diligence document is quite large, and you should avoid cursory guesstimates by well-meaning but uninformed persons.
• Depending upon the purpose, the valuer can apply different valuation approaches and methods; their significance will be explained by your professional, and they will be in a position to defend and explain how they got to the number and what evidence they relied upon.
• Understanding and explaining how present market conditions and industry trends influence business value, and providing examples is included in the tasks of your valuer.

Empowering Informed Decision-Making

• An accurate business valuation enhances your negotiating power.
• An accurate business valuation will help in the task of attracting investors and securing funding.
• The valuation can and should be utilized to optimize business performance and growth strategies – the insights of your valuer are a rare opportunity to look at your creation “warts and all”.

Navigating Complex Financial Landscapes

• It is true that the benefits of having a current business valuation far outweigh the burden of participating in the exercise.
• Showing the valuation to your accountant can benefit in areas of tax planning and compliance.
• Estate planning and succession strategies based on valuation results flow more smoothly.

Engage with Independent and Qualified Business Valuation Experts

• The key qualities to look for in a business valuation professional are experience, qualifications, professional memberships, insurance, and a databank of transaction evidence.
• The process of engaging with a valuation expert should always be in writing, be specific, be with an independent (free of bias) professional, and be fully costed before you sign the letter of engagement.

In the ever-evolving business landscape, a clear understanding of your company’s value is paramount.

Independent business valuation equips you with the knowledge needed to make strategic decisions, attract investors, and navigate financial landscapes.

By partnering with experienced valuation professionals, you can unlock the true worth of your business and set yourself up for success.