there is no escaping the fact that the

" value of any business is only what a willing buyer will pay"

We have extensive experience of "real world" valuations and use a wide variety of methodologies to provide an estimate of value.

These can be broadly categorised as:

Asset Based

The value of the assets of the business. We leave valuation of the buildings to experts in that field

Earnings based

Values determined by applying ratios to the past, present and estimated future adjusted annual profits

Cash Flow based

Looking at the capital investment required by the business and the cash generated by the business. Extremely important where the prospective acquirer is considering borrowing to fund the purchase.

Pay Back periods

Frequently used as a double check or rule of thumb

Consolidated

Can be used by acquirers to estimate the value of the "future profits" from the consolidated operation to determine the maximum payable

Industry Specific

Many industries have their own "rule of thumb", often simplistic valuation methods. These can become self fulfilling as they are well known, but should not be taken in isolation.