The stock standard answer is that it’s worth what someone is prepared to pay for it but there are still a number of key factors and questions which go into that answer:What is my Company worth?
1. A good sanity check is to stand back and look at what you would pay for your business. You are aware of the pitfalls, problems and risks and that will normally give you a fair idea of what a purchaser is going to think.
2. A valuation can vary widely depending on the balance sheet and the net asset position. What is happening to any surplus cash in the business? What is happening to the debt? These are just some of the questions we will ask and which will affect your company’s value.
3. How is business? Is it going well? Is it declining? Again, that will affect value.
4. Are you overly reliant on one customer? Do any customers account for more than 10% of turnover?
5. Are you in a growth business sector or one that is seeing a decline in demand or increased competition from low labour cost countries?
6. Do you have one or two key employees who are essential to the business?
7. Have you put in a place a middle management tier or is the business still heavily reliant on you personally?
These are just some of the questions that can affect the value of your business and which we will discuss with you during your free valuation with one of our experts.
Call us today on 0800 046 1792 to make an appointment to discuss these and other important questions with one of our business valuation experts.