Frequently asked questions

Frequently asked questions to help you should you need more information please contact us by email or phone we will be glad to make an appointment with you.

Q: How accurate is the Calculation of Value, Limited Appraisal or Comprehensive Appraisal Report?
A: A question often asked about our service is, “How realistic is the number that you put on my company”? The only way to determine the true value of a business is to sell it. It can only be worth what the market is prepared to pay for it.

Q: What is the difference between a business appraisal and a business valuation ?
A: A business appraisal is an opinion of a fair market value of the business based on a price a willing
buyer and willing seller wish to transact whereas a valuation is based on an analysis of the financial
statements and the associated risk of the investment.

Q: What is the value of my business?
A: All business owners would like to know the worth of their business. There is unfortunately no
simple “rule of thumb” that will determine the true value. A formal business valuation is required in
order to eliminate the guess work.

Q: Why would you say business valuations are so important?
A: Business intermediaries support the idea that businesses typically sell faster if they have a
professional valuation available.

Q: Can I ask my accountant to value my business?
A: Yes you can but most accountants do not specialise in valuations. Buyers would also be hesitant
to believe the valuation proposed by the company’s accountant due to the relationship with the
seller.

Q: I want to sell my business; would buyers accept independent valuation opinions?
A: Buyers would more likely accept independent unbiased valuations prepared by a specialist. They
use a number of methods and techniques to complete a valuation. Lawyers and accountants are
not trained to produce accurate valuations. Experience helps independent valuators to compare a
business to other sold businesses.

Q: Why do so many listed businesses for sale not sell?
A: This could be for a variety of reasons but most commonly the business is inaccurately priced.
Using rule of thumbs can be helpful but cannot accurately determine a business’s value. It must be
remembered that no business is the same and each require an independent view.

 

For more information about frequently asked questions please contact us

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