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.
