Valuation of your business

Whether you are seeking a valuation prior to a sale or for any number of other reasons, such as the preparation or execution of a will or buyout of an existing shareholder; careful consideration is required as to the method used and factors to be included.

In addition to the simple value derived from subtracting liabilities from the value of the business’s assets (known as the Net Worth of a business) the following aspects will be among those influencing the final valuation:

      a) Future profit stream

      b) Quality and structure of both customer and supplier bases.

      c) Quality of staff

      d) Potential for future development.

These factors contribute to the ‘Goodwill’ of a business, which when added to the Net Worth results in the final valuation.

Generally the Net Worth of a business is based on the book values from your accounts of assets and liabilities. However, buyers will seek to amend these values if in their opinion the book value over states the market or realisable value.

Trade Transfer will provide a professional and commercially based assessment of the value of your business, and therefore your potential wealth. This can be used as a starting point in the sale of your business, or to aid your efforts to increase the value with the view to realising that wealth at a later date.

To discuss a business valuation, please contact us on 05602 045312, or contact us by email by Clicking here. We will be happy to answer any questions you may have.