Business valuation is the process of estimating the value of a business, usually at the time of sale. The value is determined by comparing it to similar businesses or to other companies in the same industry.
A business valuation report can help you determine the fair market value for your business, which can be useful when:
Preparing for an exit strategy
If you’re planning to sell your business, you’ll need to know what it’s worth so that you can negotiate a fair price. A professional business valuation will give you a clear idea of what your company is really worth and how much money you could make when it does go on sale.
Planning for succession
If you have employees who are interested in buying part of your company, a professional assessment will provide them with a realistic estimate of its value so that they know whether or not they can afford it. It also means that if they do buy into your company, they won’t end up paying too much money and risk losing their investment if they decide to sell at some point down the line.
Business valuation services
A business valuation is a professional opinion of the value of a business.
The process of conducting a business valuation involves examining the financial reports of a company and other relevant information such as industry trends and economic conditions. The professional will also take note of current trends in the market, including mergers and acquisitions activity within their sector.
Business valuations are usually carried out for:
– Sale and purchase transactions
– Asset allocation decisions
Business valuation services in Singapore
Business valuation entails the process of estimating the value of a company based on its assets, liabilities and profit. It is a critical part of the exit strategy for an investor or owner who wants to sell their business.
You want to raise equity financing from investors by selling shares in your company. Valuations help you determine how much money you will be able to raise and at what price per share.
You want to buy another business or merge with another company, but need proof that your company is worth more than theirs. In this case you will use a target company proxy (TPC) which indicates how much money each share should be worth based on similar companies in the industry with similar revenue, profits and growth rates, etc.
You have decided that it’s time for an exit from your business and want to sell it outright or via an IPO or trade sale, which means that whoever buys your company needs to know.
Business valuation services offers you a different perspective on your company’s value. Our business valuation team will look at your company from a professional and objective point of view, enabling you to make informed decisions regarding the future of your business.
Stage 1: Preparation
We begin by examining the financial performance and structure of your business. We then consider what other companies in similar industries are doing in terms of profitability, growth and any other factors that will help us understand how your company compares to its peers.
Stage 2: Reviewing comparable transactions
The first step in determining the value of a business is to get an idea of its worth. There are many methods to do this, but the most common is by using a business valuation expert.
Business valuation services vary from company to company, but there are some common features:
- An overview of your business and its financial data
- A detailed look at the market landscape for your particular industry
- A review of your competitors’ financials, including their sales figures and profit margins
- A look at how much similar businesses have sold for in recent months
- An analysis of the current state of your company’s cash flow