Business Valuation

We will give you our opinion of the market value for your business after our initial meeting with you to understand the business fully and its potential and growth opportunities.

Any mediocre business agent can introduce a number of buyers, our aim is to make quality introductions that we have pre qualified based upon the reason for buyer interest and financial standing for the particular transaction size.

The important thing is to find the cream of the crop, which are the quality buyers that have been researched and qualified by us. We then ensure they are presented with good business information about the business opportunity in the form of a sale memorandum as well as adequate opportunity to discuss the business with the owners. We let the market decide value by asking for best offers which reserves the vendors position and options. Creating a competitive bidding environment can lead to higher offers to purchase.

Valuation can be based to some extent upon a multiple of the maintainable earnings of the company and with additional consideration of its asset base broadly speaking but we cannot legislate for the value the company may have to the "special purchaser" who may be interested in the business for a whole host of different reasons for instance;

  • Strategic location,
  • Client list or customer base,
  • Specialisation,
  • Technical capability
  • Operational and financial synergy with current operations.
  • An overseas buyer needing a UK base.
  • Developed products with potential
  • Patents
  • Skilled workforce
  • Skilled sales team
  • Established Market penetration
  • Globalisation

The true value of the company is the price the most suitable purchaser is prepared to pay given the market conditions at the time, and the vendor's aspirations for achieving a value they are prepared to accept for the company. Sale value should also be considered in light of any conditions upon which the offer is made such as the sale contract requirements or warranties and indemnities requested by the buyer.

Strategic motivations for the purchase will usually add significant additional business value. Finding the special purchaser is Active Business Brokers speciality given we are results driven.

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