|
Valuing a company
Companies are all different. The value which a company can be sold
for depends upon the skills of the Broker in securing the most suitable
purchaser.
Factors such as the customer spread and account size, technical
capability, historic earnings achievement, the age and quality
of the asset base,
will all have a bearing on the overall value as will market sector
and competition.
We can arrive at a valuation based upon a multiple
of the maintainable
earnings of the company and its asset base broadly speaking but
we cannot legislate for the value the company may have to the "special
purchaser" who
may need 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
vendors aspirations for achieving a figure they are prepared to
sell the company
for.
Finding the Special purchaser is Active Business Sales speciality.
Strategic
motivations for the purchase will usually add significant value
to Business.
Common Sense and commercial reality must be used
in reaching a sale conclusion.
Price may be dependant upon conditions attached to an
offer careful consideration should be given to respective offers.
|
