Business Valuation Process

An accurate valuation is the most essential step when beginning the process of selling a business. A professional valuation provides a rigorous and objective analysis of the company that goes beyond just an in depth review of the accounts. The Axis Partnership’s team of experienced brokers and valuers can determine the operational strengths and weaknesses of a business by conducting a thorough and rigorous valuation on your behalf, in order to develop a comprehensive overview of a business’s worth.

There is no correct price for a business. The value is dependent upon market forces, desirability, and the individual circumstances of a purchaser. Only by using professional selling agents will you be able to develop an accurate assessment of your company’s current worth, which is why a professional valuation is so important when assessing the potential saleability of your business.

A professional valuation is a measure of trust which will establish the realistic market value at which a willing and informed purchaser would purchase a company in normal open market circumstances. A good measure of the existing trust – or ‘goodwill’ – of a business is to look at its adjusted pre-tax net profits or other business performance measures such as; gross profit, turnover development, profit margins, cost ratios etc. Each business sector can have different ways of measuring business values.

The Axis Partnership offers you a professional no-obligation valuation service, the aim being to establish a realistic achievable valuation which will enable a seller to consider their next move. This can be done by having either a face-to-face meeting, video call or telephone conversation with one of our experienced. We are in regular contact with active buyers across a diverse range of sectors and as a result, we are able to provide a far more accurate and achievable valuation.

The most common valuation technique consists of an assessment of the present value of the annual wealth generated by a company. Relative values, which are usually dependent upon market confidence or perception, are also calculated by examining companies with similar operations or transactions. Valuations also take account of both the historic performance of a business and future trends, as well as brand image and management strength. Our business selling agents will use a combination of the two to determine the most comprehensive and accurate value of your company.