Business Valuation for Business Purchase.

Business Valuation for Business Purchase

Business Valuations for Business Purchase.

When an individual, partnership or company is contemplating buying a business, the very first thing they should do is have a business valuation prepared by an expert in business valuations

It is in the interests of almost all the parties associated with the seller, be they business brokers, the owners themselves or their accountants, to get as high a figure for the business as possible. Sometimes there is no rationale for the asking price of a business. Not only will a business valuation focus on areas of concern or future improvement, it will also ensure that you don't pay too much for business. It will explain the calculations performed and  also elaborate on the assumptions underlying the parameters applied. This will explain why certain multipliers or discount rates were applied to arrive at the conclusion of value. All our business valuation reports are concise, understandable  and completely transparent. It is always worth remembering that the small cost of a business valuation can save many tens of thousands of dollars during a business transaction.

Paying too much for a business can have far reaching consequences. Obviously, if you have just bought a business, you intend to operate the business with the management operating in a rational way with a goal of maximising the value of the business. However, there are numerous circumstances that may preclude this from happening. Whether the reason is failing health, marital separation or even just not being suited to the business or industry, should you decide to sell the business, and you discover you have paid too much for it, the worst case scenario is that you are left with no business and a sizeable business debt. Although this is the worst case scenario, isn’t as rare or unusual as you would expect.

There are a great many benefits of a properly prepared business valuation, but one of the most useful is that there is a far better chance of a sale being completed if both buyer and seller start with realistic expectations.

The principle of Business Reports and Values, Lee Goldstein, has been involved in Business Valuations since 1985. He holds the following qualifications:

  • Double Major Degree in Accounting and Finance
  • Diploma in Forensic Accounting
  • Graduate Diploma in Valuation
  • Advanced Certificate of Business
  • Advanced International Certificate in Intellectual Property.

Lee has conducted numerous intellectual property valuations covering a diverse range of industries and is often called upon to provide expert testimony in judicial matters, and  Lee has valued businesses and intellectual property worth over $350,000,000.

Lee has been the Triennial Certificate holder and Licensee of a Business Broking Company since 1992

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