Valuations are extremely useful management tools for business owners looking to maximise their current business performance and long-term value.
A valuation can help you identify what you are currently doing that is:
a) adding to your business value, and
b) detracting from that value.
My advice is that, if your business is greater than five years old, you should have it valued on a reasonably regular basis, say every 2–3 years depending on your growth track and the external environment the business is experiencing.
We created the following video a few years back to explain how valuation can be used as a management tool, and how often you should have a valuation conducted.
We also published a client case study which showed how an independent valuation, carried out early, would have made life a whole lot easier for one of my clients who was in the midst of a credit squeeze.
Visit and subscribe to the JPAbusiness YouTube channel for more videos from the JPAbusiness team.
If you are interested in seeking a market appraisal or valuation for your business, or for a business you’re considering purchasing, contact the team at JPAbusiness on 02 6360 0360 (Orange) or 02 9893 1803 (Parramatta) for a confidential, obligation-free discussion.
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.