A business valuation involves far more than assessing your capital, cashflow and order book – local and national economic conditions and sector competition also play an important part when arriving at a final figure.
There are many reasons why you may need to value your business assets, including:
- A planned change in ownership due to exit planning
- Gifting shares to family members as part of a succession plan
- Merger or sale to another company
- New shareholder or partner joining your business
- Raising investment capital
- Putting in place or updating an employee stock ownership plan (ESOP)
- Monitoring business performance goals
- Tax planning and negotiating with the tax authorities
- Company buy back of shares
- Financial reporting requirements
- Shareholder/partner disputes
- Divorce resulting in a split of assets
