What is your business value?
Business value and valuation are often confused.
An official Business Valuation is undertaken by a qualified business valuer and is generally used for specific purposes. This could be for a bank, a partnership settlement or some legal reason. A Business Valuation generally requires a full audit of information and can be a costly process.
When selling a business you are interested in the Value of your business effectively this is the price someone could pay. It can also be called the Business Market Value which is defined as an estimate of the amount a business might exchange for at settlement between a willing buyer and seller , in an arms length transaction where each party has acted without compulsion.
Sound a mouthful but the final sale price is the only true measure, however you do need to determine a starting point. This is where market knowledge and understanding are important.
At BisSales we have applied some rigor to the process of determining business value most Business Broker simply look at a Businesses financial data and determine a potential listing value from that. There is a lot more to a business than just the financial data there are risk and value drivers.
Bissales has a unique Business Value model and we work with our clients to determine the non-financial risk and value drivers to maximises the potential business value at sale. The non-financial drivers can increase the earning multiple that could be used to calculate the potential sale price of a business.
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Bissales are Melbourne Business brokers working with clients on the sale of their business and longer term exit planning. Assisting business owners to maximise the value of the business.