Whether you’re making exit plans or you want to give confidence to investors, knowing the value of your business is a vital step.
From the inside, it might be hard to say what that value is. You’ve put long hours of hard work into building your business from the ground up, but what does that mean to a buyer or investor in monetary terms?
As a starting point, it’s important to work out what it is you’re actually selling. Is it the business’s name, and the reputation that comes with it? Is it the lease on the premises – and is this currently owned by you or by your company?
The kind of business you run, the sector it’s in, the assets it holds and the people who work there could all make a difference to its overall value.
Setting all of this information out from the start will help you to reach an accurate valuation, and to communicate it clearly to potential buyers.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.