+1800 858 696
support@allbizsales.com
Completing a business appraisal and valuation is one of the first steps to complete when selling a business.
Firstly a business is appraised with some of the following:-
2. Financial analysis – Profit and Loss, Assets register such as Furniture & Fittings, Plant and equipment, Stock on hand, loans in place etc.;
3. Operational documents – supplier information, customers, strategy, systems, procedure/process documents, rosters and marketing materials;
4. Legal details – staff and customer contracts, any franchise agreements, leases, health and safety.
From this process and other informatioon, a valuation appraisal of the business is determined.
There are several ways to value a business; however, generally, a valuation method will be centred on the business’s profits over the past 2-3 years and if that profitability will remain in the future.
Whatever the method, the valuation needs to be realistic.
Seldom will a business sell above a reasonable price.
In summary, a valuation appraisal substantiates and validates the asking price for the sale of the business.
However, business valuation appraisals are not an exact science.
Any valuation appraisal is indicative only. The ‘market’ will provide the selling price.
The valuation of a house is comparatively much easier than valuing a business.
If you'd like help buying or selling a business, raising capital, seeking an equity partner or any other business deal, contact your local Allbiz State Licensee team member at this link - https://www.allbizdealroom.com.au/our-team
allbizdealroom.com is part of Mentored Business Sales Services, a network of digital platforms committed to connecting buyers, sellers, and investors with business opportunities. Each of our platforms caters to a distinct business sector.
Our Business Divisions
Information Links
All Rights Reserved | AllbizDealRoom.com.au. | Manage Account