analytics

APPRAISALS AND BUSINESS VALUATIONS

 WHEN IS THE RIGHT TIME TO SELL?

Don't wait until the business has exhausted every opportunity. The best prices are obtained when the business can still offer upside potential to the new owner. While it isn't always possible, the best time to plan for the sale of your business is two years before the time you wish to exit.

 Value relates to the expected earnings of the business and the risk of those earnings being maintained. 

BUSINESS APPRAISAL

 At Clyth MacLeod Business Sales we provide business owners looking to sell their businesses an appraisal of their business. This Appraisal is a requirement of the Real Estate Authority and is based on data from comparable sales of similar businesses. The appraisal must realistically reflect current market conditions and must be supported by comparable information on sales of similar businesses. This may assist you in gaining knowledge of where your business sits in today's market and may also help you plan ahead for your exit strategy. Different valuation methodologies will be considered when appraising your business.

There is no charge for the appraisal. 

If you would like an obligation free appraisal on your business, please complete our APPRAISAL REQUEST FORM and we will contact you promptly.

BUSINESS VALUATION RELATIONSHIP MATTERS

If you are requiring a more formal valuation or if you require a valuation for a relationship matter this will be considered more complex and outside of our scope of expertise, we are happy to refer you to a Valuer within this field. A fee will apply with the Valuer of choice and you will need to ascertain this fee directly from the Valuer.

 Valuing a business can be a complex process, no two businesses are identical. This means there are different factors that need to be applied even to what appear to be the same type of business within the same industry sector. And remember, the best time to sell is when your business still has potential for growth and is performing well. However, a bad year should not stop you from selling, as often this is recognised as a one-off result and will not necessarily affect the value. Covid-19 is also likely to influence business performance in 2020 and  2021. It is likely most businesses will have declining revenue and profitability but there will be some businesses also that will have increased revenue and profitability. More likely, the best time to sell is when you're ready, not when you are forced. That means planning ahead.