Even if you are not looking to sell part or all of your business, how many times did you wonder to yourself how much your business is really worth? What is the maximum price you are willing to pay when negotiating the purchase of a business? Unlike a public listed Business, whose value is constantly available at the click of a button, a private business' value is dependant on various factors that are not easily quantifiable. A business is worth only as much as a buyer is ready to pay for it.
So what is the need for a business valuation?
Knowing how much your business is worth is also fundamental in planning further growth of the business, enabling you to have a more specific idea of capital that can be raised through loans or issue of equity, to finance these growth plans.
A Business Valuation is not an exact science. Depending on what the valuation is required for, different techniques need to be used to arrive at an appropriate valuation. There are various different needs for a valuation to be carried out, main ones being:
1. To Buy a business:
2. To Sell a business:
3. To buy out a partner:
4. To enter into a Joint Venture
5. To obtain finance
These are discussed in more detail on their relevant pages.At Victor Schranz & Associates CPA, we have the tools and experience necessary to enable you to make an informed decision on the viability of an acquisition as well as the value derived from a sale. Contact us on info@FirmsForSale.com or Phone 21 373330
Litigation / Economic Damage and Lost Profits Analysis
We understand that certain circumstances call for an independent, accurate, and defensible opinion of value. Many times the key to a successful position is an in-depth understanding of the value and profit drivers of a business and being able to correctly isolate the financial and competitive changes that effect business. At Victor Schranz & Associates have the necessary experience and repute to provide business valuations for use in litigation.Also read our write ups on business Valuation and valuing your business!