How to value your Business?

First and foremost there is no exact science to valuing a business. Ultimately the value of a business is determined by what price a willing buyer will pay for it. We always advise that you should consult an accountant and/ or business valuation specialist so that they can consider the circumstances to provide some guidance.

What do accountants and business valuers take in to consideration?

  • Business history, historic performance, present performance and future projections.
  • Business Name, branding, trade marks, deisgns and goodwill.
  • Clients value of contracts or orders
  • Any intellectual property rights owned by the business.
  • Strengths, weaknesses, opportunities and threats of the business.
  • Location, premises/ property.
  • Employees and the skills they have to offer.
  • Financial aspects of the business.

Some of the items mentioned will be difficult to quantify due to the fact that they are intangible.

If you’re interested in buying or selling a business and would like to find out more, please contact Izaz Ali on izaz.ali@lawdit.co.uk.

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