An important step in preparing your business for sale is to have a proper valuation done. There are several methodologies used to value businesses including:
- Comparative transaction method.
- Multiple of discretionary earnings method.
- Discounted cash flow method.
- Capitalized excess earnings method.
The method chosen will depend on the nature of your business and it is not usual to use several methods to arrive at a recommended selling price. By having a professional valuation done you may be able to justify a higher selling price then you would otherwise.
From this process our team is able to advise you on effectively getting your business ready for sale, determine a sale price and prepare supporting documentation to justify the value and get you a better selling price in a shorter time frame.