phone:+6493098727 or fax:+6493576318
sell your business buy a business
call us

Your business worth

Valuing a business is not a simple process. No two businesses are identical so there are different factors that need to be applied, to what appear to be, the same sort of businesses in the same industry sector.
 
Using a normalized EBIT (Earnings Before Interest & Tax) or EBITP (Earnings Before Interest, Tax & Proprietors Salary) and applying an “industry normal multiplier” risks an incorrect appraisal (which could have dire consequences if taken out to the market)

In the last 20 years Company Sales has sold hundreds of medium to large businesses. When appraising the market value of a business we know it is vital to address and assess the key drivers in a business before trying to ascertain an appropriate multiplier.

 

The Customers

  • Who are they and why do they deal with this Company.
  • Do one or two customers make up the lions share of turnover
  • Will they continue to do business with a new Owner
  • Are they contracted in
  • Is there a good spread of clients
  • Do they pay on time
The Plant
  • Is the Plant & Equipment up to date
  • Is there new technology on the horizon
  • What needs replacing
  • What is the capacity utilisation
  • What is it’s real value as opposed to book value
  • Is there a maintenance programme in place
The Suppliers
  • Are there contracts in place and are they transferable
  • When do they need to paid
  • Are they a reliable source for supply
  • Are there any alternative suppliers in this field
The Premises
  • Will they accommodate growth
  • Is the lease term appropriate and is it at market rates
  • Can the lease be re assigned to a new owner
  • Do the premises require repair, maintenance or reinstatement at end
  • Location, is it appropriate for the business
Once we have gone through this process we consult our comprehensive database of businesses sold to  see what has sold that is similar, how long it took, were there any sticking points and what the purchaser paid.We then correlate all the above data to calculate the correct multiplier which is applied to the EBIT or EBITP to arrive at a market value. 

So, what’s your business worth? - Give us a call if you want some help.