This is How to Value your Business
Looking to sell your business? Then it is very important to know how much your business is worth! Our Glasgow accountant team can provide you with an accurate valuation, putting you in the best position for investors and buyers to understand what stage your business is at. We will also help you through the sale of your business. Also, we will be delighted to be used as an accountant for new business needs!
The team at The Kelvin Partnership have several years of experience dealing with all kinds and sizes of businesses. Taking some businesses from start up to success, we understand what it takes to grow! When valuating your company, we will provide you with a break down explaining everything!
What is a Business Valuation?
A business valuation is the amount of money your company is worth. If you are a profit making business, there will be value! But, also, even if you are yet to make a profit, your business will still be deemed profitable and so will have value.
We’ll let you know all there is!
Why might you need a Business Valuation?
The obvious reason that you would need to have a business valuation would be because you are selling it. However, a business should always have an up to date valuation because; something could happen to the owner, the business is expanding, there is a business/family disaster or a partner/shareholder wants to leave.
Always make sure you are aware what your business is worth.
How do you decide the value of a business?
Hiring the team at The Kelvin Partnership to deal with your business valuation is the first step. An accountant for new business matters will have a fresh perspective! A business’ valuation will be down to the state of the current and potential profits. The reason this is the way businesses are valuated is because it gives investors or buyers a realistic idea of the money to be made.
What’s needed in order to value a business?
An accountant for new business finds four things important when it comes to valuating a business.
- Expenses and Tax – the annual net profits
- Base Salary – how much are you being paid?
- Growth – how can the business grow? Is there a potential for increase in revenue?
- Current Profit – the annual profit since the business started.
Making sure you know how to value your business is vital when it comes to selling your company.
At The Kelvin Partnership we like to keep up to date with the best and latest financial advice. Look at our last post to learn more about the difference between cash positivity and profitability!
Need a financial service? Contact us today!
