Selling your business is a major personal decision so it’s essential to plan how you will maximise the net proceeds from its sale. One of the most important steps is finding out what your company is worth in the first place. Our business valuations can help.
Providing valuations for every business
If you consider your business to have a market value, or if you want your business to provide you with a lump sum on sale, it’s essential to start planning how you will realise that value. This is particularly important if you envisage selling your business within the next 10 years.
Our process of valuing a business
Increasing profitability is always important but no more so than in the years leading up to the sale. So what is the range of values for your business? Although you may think you can make an educated guess, a professional valuation gives you more solid ground. These are the sorts of questions a potential purchaser might ask:
Are sales flat, growing only at the rate of inflation, or exceeding it?
To what extent does your business depend on the health of other industries or of the economy?
What is the outlook for your line of business as a whole?
Will your company’s products and processes be outdated in the near future?
How competitive is the market for your company’s goods or services?
Does your company have to contend with extensive regulation?
Are your company’s products and services diversified?
What are your competitors doing that you should be doing, or could do better?
Will key staff remain after the sale?
How does your company fit with the purchasers?
Helping you to maximise the long-term value of your business
Between them, these factors will all have an impact on the price-earnings ratio – the price per market share divided by the annual earnings per share. This, in turn, will determine the market value of your business, giving you the information necessary to begin preparing your business for sale.
Stephen Fox, Managing Director FCK London
"The team at Clark Howes were both diligent and patient in working with us on our recent purchase of London Creative. Although on the face of it this transaction should have been relatively straightforward it proved not to be. Their analysis of the situation, in-depth prognosis and straightforward response to issues as they arose was the glue that kept this deal together. We have every intention of using Clark Howes for our next transaction."