Welcome to the FAQs (Frequently Asked Questions) section of our website here we try to answer the questions and concerns which are generally asked by our customers or clients. Because these are general terms that is why it is called frequently asked questions (FAQs). We hope that your concern is gets solved here. And here we begin:
1. What is the value of a business?
Value of a business represents the future cash flows of a business. It is also considered as the measurement of money gathered that will legitimize the sum and risk of the speculation. It also depends upon the thought of the business and also about what the owner wants to achieve, and we can’t say that value of a business is always just financial numbers. There are several more factors or things are available to decide and calculate the value of business.
2. How do I find the real value of my business?
Value of a business is determined by “how much the market is ready to pay” in return for your business. But it doesn’t looks professional, so let’s make it clear.
Business value is calculated by three ways:
- Asset Method: In this we have to know the net value of our each business asset. Sometimes people used to call it liquidated value or replacement value, but the meaning remains same. A goodwill amount can also be added as an asset in many cases to calculate the business value.
- Earnings Multiple: Multiplying the normal net benefits before interest and tax (EBIT) by a specific numerous. The various will rely on upon typical industry and provincial qualities accomplished previously, the apparent danger of the business and its allure.
- Discounted Cash Flow: Using cash flow outcrops to conclude the current value of upcoming cash flows.
Most people came to a value of the business or else they calculate the basic estimation of their business through predictable techniques. But few people come with the sufficient information to prove the cost of their business to the buyers. Here we really need a professional advice and support.
3. Why business valuations are required?
When you are buying or selling a business, a valuation is necessary to satisfy the both parties sufficiently. A valuation help both (buyer and seller) that the transaction is completed at the best suitable price. And in the situation when the business settlement is not happened according to the valuation report, one can ask about the reason of the confliction.
4. How long business valuations take to be completed?
There are certain things needs to be considered before calculating the time required to perform a business valuation. But, generally it can take up to 10 working days to complete a business valuation report.
5. What are your qualifications?
All of our valuation experts are well experienced chartered accountants with degrees in Accounting & Finance.
6. What sorts of businesses you can value?
We can value almost any businesses based out of Australia, there are no certain limitations or sort of specific businesses we value.
7. Do you use automated computer systems or software’s to do business valuations?
We don’t use any kind of computer system or automated software to perform the valuations for the businesses we’ve got. All the valuations are performed by the highly qualified and well-experienced Chartered Accountants whose are expert in valuing businesses. As your reliable solutions partner, we put efforts in to give our best to give you the best suitable valuation reports. We spend time on our each business valuations tasks or projects to finish our tasks while maintaining a great approach of work.
8. Do I need to place online order for my valuation?
No, you can get send us an email or fax by filling our online Valuation Order Form and sent it back to us in form of email or fax. Just browse and navigate our website properly for further details or in regards to place an order.
9. What is the information you required before starting the valuation of my business?
Every business is different and has different information is required performing and finishing the valuations of a sort of business types. Sometimes we required more information to start working on your project, like 1 year financial statements, business information, and annual turnover and so on as per the requirements. If in that case, when we don’t have information or else we have some information but not full and we are not able to perform the valuations of your business. We will refund the money we have taken from you to perform your business valuation.
10. Are we ready to go ahead?
Yes, we are ready to go ahead, because doing or preparing valuation reports are our mainstream work. So you can get in touch with us and discuss further to start working with us.
We hope that all your concerns will be solved here and if you found that any of your concern or query is not solved here or else you are still confused to understand something. Just consider contacting us and we would like to hear from you to solve your concerns all getting your feedback.