Who should you get advice from when you want to determine the value of your business: an accountant, a business broker, a registered business valuer, your solicitor, another person that has sold a similar business, your best mate down the road who has recently sold a completely different business, your bank manager?
The reality is you can take advice from a range of parties, but the most important thing is to ensure the advice is:
- independent
- based on current market knowledge
- frank and professional
- supported by evidence.
Independent: Advisors such as accountants, solicitors and bank managers are all learned people who make important contributions to your business, but when it comes to valuing that business they may be coming from a different perspective than an independent valuer.
This perspective is often based on the services offered to you as their client, and a long-term relationship with you, and that may make it hard for them to be truly independent and unbiased.
Knowledgeable and professional: Business value advice needs to come from a source that is knowledgeable, has experience in buying and selling your type of business, and is prepared to tell you the unvarnished truth – not just what you want to hear.
Evidence-based: A business valuation needs to come with supporting facts and evidence to provide confidence that what the valuer is telling you is tried, tested, recent and real.
It is important that the opinion of fair market value of the business is supported by comparable sales and information on market appetite.
The JPAbusiness team offers a range of business valuation services. Contact us on 02 6360 0360 or 02 9893 1803 for a confidential, obligation-free discussion.
