Determine The Value Of Your Business

Determining the value of your business is the first step every business owner must take in their business sale journey. The valuation sets the foundations for the success of your future business sale and that is why it is crucial to make sure your business is not being under or overvalued.

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The business valuation process itself can be complex, based not just on your bottom-line profits, but a multitude of figures and factors – both quantitative and intangible. Financial performance provides an objective and useful insight into material value and history, but it rarely considers the true business opportunity and intellectual property values.

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Remember that knowledge really is power when it comes to selling your business. With a better understanding of the sale value your business might achieve via a professional business valuation, you can progress to sale completion in the comfort that you are not undervaluing your business.

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MAXIMISE YOUR BUSINESS SALE VALUE

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Here are a number of ways you can influence the value of your business:

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• Selling at the right time.

• Creating / identifying business protection and barriers to entry.

• Identifying potential issues that could affect value and addressing them in advance.

• Identifying those purchasers that will have a genuine strategic interest in acquiring the business.

• Ensuring that the key value drivers of a business are effectively communicated to the purchaser.

• Introducing competitive tension into the sale process.

• Avoiding any last minute surprises for the purchaser which could jeopardise the deal.

• Resisting last minute attempts by the purchaser to chip away at the price previously agreed.

• Ensuring a range of options has been considered to maximise your proceeds net of tax.