Why You Need an Outside Expert with Business Valuations
Whenever you would like to buy an existing business, sell yours or divide a business between different parties, getting an independent outside business valuation is in the best interests of all parties involved. An outside expert provides insight that is fair and unbiased, taking a clerical approach to evaluating the business.
Various aspects are considered when arriving at a business valuation. These include operating expenses and accounts receivable for the company. However, there are several approaches to business valuations. A common approach is to measure the worth of the company against numerous comparable public companies. This is referred to as a market approach. Financial buyers tend to use this approach, which is in partly based on discounted future financial returns.
There is a more seldom used approach, referred to as the cost approach, and it measures the replacement cost of assets. It is adjusted for obsolescence and depreciation. Liquidators tend to opt for this type of business valuation based on the assumption that some businesses are worth more “dead” than they are “alive”.
Have the Facts at Hand with Business Valuations
Whether you are looking to court more investors to your business, or would just like to accurately gauge the value of your company, a formal and independent business valuation is a very important tool. While so many business owners are focused on building their businesses, advancing their market share and staying ahead of competition, they seldom just stop to take a good, hard look at what they have actually been able to accomplish.
Business valuations provide you with the opportunity to put a real, tangible value on your business, which may be used as a lens through which you can focus future efforts. Having a realistic understanding of the value of your business is an important first step to making crucial and often difficult decisions. However, having the right information at hand can make difficult decisions easier.
Choose Muller and Partners for Independent, Accurate Business Valuations
Even though it is not always easy determining the true value of small to medium sized businesses, valuations can still be performed by an accounting expert. At Muller and Partners, we bring many years of experience to the sector. We believe that it is always important for business owners to know that their company’s worth is increasing each year, to show them that what they are doing is working.
Our professional team at Muller and Partners will assist you with valuating your business, while offering you the support that you need to make informed and important business decisions. Our team is qualified and experienced to provide you with all the information that you need to make tough but important and necessary business decisions. Contact us at Muller and Partners for professional, comprehensive and independent business valuations that provide you with the information at your fingertips. We also provide taxation, accounting and consulting services and solutions in South Africa.
Speak to our team to discuss your business valuation needs in far greater detail and benefit from partnering with us.share