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3 key questions to ask when valuing a business [infographic]

WRITTEN BYJames Price | JPAbusiness

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Business valuation is not an exact science and nor is it a simple science. However there are some factors that should always be considered when assessing a business’ value.

They are:

  • repeatability of current earnings
  • availability of information on the business’ performance and business model
  • point of difference and competitive advantage.

We've created the following infographic to help you get started on assessing the value of a potential purchase opportunity.

It’s based on some of the key aspects we look at when assessing business value for our clients.

3 questions to ask when valuing a business

The JPAbusiness team has created a number of free resources to help our clients and subscribers understand the business valuation process:

Take a look at our online Resource Library for more free resources for business operators, buyers and sellers.

If you would like advice or support regarding business valuation, please contact the team on 02 9893 1803 or 02 6360 0360 for a confidential, initial discussion.

 

How to assess business value cover 2022
Free ebook
How to assess business value

This ebook asks: How much Business Maintainable Earnings does the business generate? How much meaningful information do you have on the business' performance and overall business model? What is the point of difference and competitive advantage?

About James Price | JPAbusiness James Price has over 30 years’ experience in providing strategic, commercial and financial advice to Australian and international business clients. James’ blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.