What’s your company worth?
Valuations are an essential starting point for making a series of important business decisions, whether acquiring or selling a business. A professional valuation provides a rigorous and objective analysis of the company that goes beyond the audited accounts. The valuation process reveals and takes into consideration operational strengths and weaknesses, whilst challenging assumptions and developing a defendable basis of value.
Getting a professional valuation.
A professional valuation will establish the realistic market value at which a willing and informed purchaser would purchase a company in normal open market circumstances.
There is no correct price for a business. The value is dependent upon market forces, desirability and purchaser’s individual circumstances. For example, a purchaser offering a directly competitive product with client synergy and the ability to benefit from economies of scale is likely to attach a higher value to a business than an individual or organisation that has no obvious direct benefits.
Principally, a valuation will seek to measure the trust that a market has in a business and its ability to create wealth. This is called goodwill. Traditionally, a good measure of the existing trust or goodwill of a business is to look at its adjusted pre tax net profits or other formulas linked to your specific sector.
Axis Partnership offers you a professional no-obligation valuation service that will establish a realistic achievable valuation to enable you to consider your next move.
This can be done by having a face to face meeting with one of our experienced Business Valuers or alternatively a preliminary valuation can be carried out using our detailed Fact Find Enquiry Pack.
We fully understand your concerns regarding confidentiality, it is high on our agenda as well, so we are more than happy to arrange a meeting off-site and we usually send all correspondence to your home address and use confidential e-mail addresses.
As one of the top Business Transfer Agents in the UK, we not only value businesses, but we sell them. This means we are in regular contact with active buyers and because of this, we can give a far more accurate and achievable valuation.
How are valuations calculated?
Professionals will use many approaches to a valuation. The valuation technique most often used is to calculate the intrinsic value of a business as an assessment of the present value of wealth generated annually. Relative values are also calculated by examining companies with similar operations or transactions. Market comparisons can be a useful guideline but can also be misleading. Relative values are usually dictated by market confidence or the perception of a sector. A combination of the two is the most effective.
Valuations take account of both the historic performance of a business and future trends.
Many crucial questions are asked about customer relationships, product and process technology, debt levels, competition factors and industry trends. The brand image and management strength are increasingly becoming a primary focus for valuations.
Confidentiality
We fully understand your concerns regarding confidentiality, it is high on our agenda as well. If you request the meeting to be held at your offices then to ensure confidentiality we are happy to attend under the guise of a Bank Manager, Insurance Company or other professional, thus reducing suspicion amongst staff. Alternatively, if you do not have a confidential meeting room at your premises then we are more than happy to meet you at a local hotel, restaurant or even your home, ensuring the location is suitable for you to feel comfortable about discussing this delicate issue.