A Business Valuation is a Formal Report on the Value of a Business
Why A Business Valuer?
The key to a successful Valuation is accuracy. Many professionals including Accountants, Property Valuers and Migration Agents do not have the time, knowledge or access to Business Sales Data to value a Business accurately and thus often refer work to a Business Valuer.
Why a Business Valuation?
A Business Valuation is a Formal Report on the Value of a Business. A Registered Business Valuer is required to follow a professional due process to ensure that they arrive at an accurate Valuation. These reports are and can be used for many purposes including but not limited to:
- Purchasers & Vendors in the Sale of a
- Business or Franchise
- Banks & Financial Institutions to arrange finance acquisitions
- Disputes in the dissolution of partnerships & marriages
- Calculating stamp duties and capital gains liabilities
- Compulsory acquisitions by Government authorities
- Expert Witness in legal disputes.
Beware of Cheap or Free Online Valuations
The Value of a Business is not soley determined by ‘the numbers’ or ‘profitability’. All business owners know there is intangible value in different aspects of a business such as:
- Skilled and Loyal Staff
- History and Establishment
- Location and Lease Terms
- Contracts and Relationships with Customers and Suppliers
- Systems and Processes
- Changes in Market Trends and Lending Policies
Quick or cheap valuations, or valuation calculators are unlikely to take these factors into consideration when determining value. An experienced valuer knows the sort of issues that are important in determining business worth, and how much emphasis should be placed on these areas.