Business Valuation

Business Valuation

What’s it all worth?

We all know how much our house is worth. But how much is your business worth?

Very few business owners really know. The value of your business may not seem like an important piece of information. It’s just a number, after all. But this little (or large) number can be a useful benchmarking tool when you’re growing your business. It’s also vital when you’re starting to consider succession planning, offering shareholding to senior employees, or wondering what your business is worth if it were offered for sale.

See if your hard work is paying off

Business valuations are an important tool to measure the performance of a business and its leaders, to track your business growth and inform strategic planning for the future.

Based in Perth, AR & B Advisors provide a comprehensive and professional business valuation service, and we tailor our valuation methodology to your specific industry. Every industry is different, so we look at a wide range of factors, including recurring revenue, equipment, assets, goodwill, intellectual property and any liabilities.

As an important tool to track performance, business valuations should be repeated on a regular basis – at least annually. We use dedicated systems and software tools to allow us to include your business valuations in annual reporting and planning. If you sign up to one of our ongoing Business Advisory Bundles, you can add an annual business valuation as an important tool to measure growth.

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Don’t get caught in the gap

Many business owners only take an interest in the value of their business when they’ve made the decision to sell. If the business is worth less than they expect, there might not be enough time to increase the value of the business prior to putting it on the market.

Your business value gap is the difference between what you think your business should be worth, versus what others think it’s worth right now. Rather than waiting to find out, talk to AR & B Advisors today about how we can work together to begin the process of finding efficient and cost-effective ways of building your business. Don’t wait until it’s too late. Start now!

Business valuations as a business planning tool

Our Business Advisory services can help. We start with a Business Fundamentals Assessment, getting to know you and your business in detail. We look for what is working right now, and what isn’t. Then we engage in Strategic Business Planning, including a full assessment of the drivers of risk and value for your business. Business valuation plays an important role at this stage to shed light on where you are now and how that compares to where you would like to be. Once there is a plan in place, we can address any roadblocks to growth and help you work towards improving the value of your business through our ongoing Business Advisory Bundles.

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    Make sure you are paying a fair price

    If you’re looking for growth by acquiring another business, AR & B Advisors can help. We bring all our experience and the same methodical approach to valuing any business. We ensure you pay a fair price based on what you are hoping to achieve with the business you are purchasing.

    Plan for your future

    Understanding the value of your business is important for driving business growth, but it's also a key factor in achieving your personal financial objectives as a business owner. An accurate valuation is built on reliable financial information, including up-to-date bookkeeping, meaningful management reporting, and well-managed payroll management processes. When you know what your business is truly worth, you can make more informed decisions about your financial future, succession planning, and managing your assets. Talk to us about how our business valuation service can help you achieve your personal and business goals.

    Our business valuation service can help you and your business with:

    Get in touch with our team of business valuation specialists based right here in Perth. And for the bigger picture, find out more about our Virtual CFO and Next Level Growth Business Bundles, ongoing business advisory and planning to maximise your business potential. 

    Free Business Valuation Scorecard

    Free Business Valuation Scorecard

    Complete our 2-minute business valuation survey to get an industry benchmark value, and see if you have a business value gap.

    FAQs

    When should I get a business valuation?

    A business valuation may be required when selling your business, bringing in a new shareholder, planning for succession, resolving partnership disputes, seeking finance or preparing for mergers and acquisitions. Many business owners also obtain regular valuations to understand how their business value is changing over time and identify opportunities to increase it.

    How is a business valuation calculated?

    Business valuations are calculated using recognised valuation methodologies such as the income approach, market approach and asset-based approach. The appropriate method depends on your business structure, industry, profitability, assets and the purpose of the valuation. A professional valuation also considers industry trends, economic conditions and future growth potential.

    Why is a professional business valuation important?

    A professional business valuation provides an objective and evidence-based assessment of your business's value. It helps business owners make informed decisions during sales, succession planning, shareholder negotiations, taxation matters and strategic planning while providing confidence to buyers, investors and financial institutions.

    Start Growing Today

    Our expert accountants and advisors go beyond the numbers to provide the advice you need to reach your personal and business goals.

    If you would like to speak to someone from our team about how we can help you or your business, fill out the form below, or give us a call today (08) 9321 3362.