If you’re considering selling or buying a whole business or part of one, there will usually be a negotiation, but a key step is to establish a likely range of values to provide a solid basis for the negotiations.
It is an interesting area of our work that is a blend of mathematical techniques and art. There is no single “right” way to value a business and there is inevitably an element of subjectivity and judgement. Often two or more techniques will be deployed and stress tested with sensitivity analysis to establish a justifiable range of values.
As Chartered Accountants, this is an area that our qualified staff study when working through the qualification. In addition to this, Joe has been awarded a Certificate in Business Valuation by the ACCA.
If you are considering selling your business or, for whatever reason, you require a business valuation, please get in touch with us for a free initial consultation.