Valuing a business is not only important when buying or selling a business; it’s also a good step to take when trying to get a business loan or pursuing investors. It’s a complicated process especially when there are several business assets that are simply difficult to put a price to such as customer base, employee performance, and brand recall. When you want to find out how much a business is actually worth, the best move is still seeking professional advice.
A Melbourne accountant can provide great assistance in this endeavour. These professionals can help you come up with a reasonable value, taking business finances, goodwill value, and market trends in consideration. They can prepare financial documents for you and give expert advice on how to increase the value of your business. If you are selling a business, they may even connect you to potential buyers. Considering these advantages, the fees are well worth it.
Opt for a small accounting firm in Melbourne if it’s a small business. Many small firms are experienced in this area and they often charge less than their bigger counterparts. Most of them also offer services you might need after the valuation like reviewing terms of the sale. To complete any business valuation process, the valuer needs to check the valuation’s purpose, business history, employee information, intangible assets, and financial details to name a few.
The next step is selecting the valuation method to be used. There are several methods and some of these may involve looking at the industry or marketplace value, using the ROI or return of investment, and assessing your business assets. It’s not imperative to use just one method. It all depends on the kind of business you have as well as your preferences. There are also instances when the financier or buyer is involved in choosing the valuation method.
Your Melbourne accountant can walk you through these methods and help you decide which one or ones to apply in your business. Find a small accounting firm in Melbourne that can help you present a business valuation that is comprehensive, organized and balanced.