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.
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.
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.