Focus Business Sales & Acquisitions Ltd

Valuing a Business

Accountants’ Valuations Are Only A Starting Point

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Valuing a business is as much an art as it is a science.  There are many valuation methods from the informal (Trade Multiples or the Comparison Approach) to formal methods of varying rigour (Asset Value, Return on Investment, Payback Value, Net Present Value of Cash Flows etc.)  However these valuations are only a starting point, as a business is worth whatever people are willing to pay for it.Valuing a Business

In practice the valuation is affected by a huge variety of factors such as the availability of finance, the number of buyers in the market, economic confidence, the financial sophistication of buyers, the sustainability of earnings, the number of similar businesses on the market, the opportunities for synergies etc.  Strategic buyers tend to pay more for businesses while professional investors tend to pay less.

Selling a Business?

We can help you achieve the value you want for your business.  Probably the single most important factor in determining the price you will get for your business is the number of serious purchasers.  Ideally you want a number of keen buyers bidding against each other to acquire your business.

We will give you a realistic valuation for your business and then we will work with you to ensure you achieve significantly more than that valuation.  We do that by profiling with you potential buyers. We then flush out buyers in Ireland, the UK and beyond, if applicable.

Our goal is to identify a number of strategic buyers who realise the true potential of your business and who wish to achieve synergies by amalgamating your business with their own businesses.  Strategic buyers will pay you the true value of your business.

Buying a Business?

You want to buy the business that is the best fit for your needs and you want to buy it at a sensible price. You want to ensure your new business performs to its potential and you wish to minimize the risk.

We will show you a strategic approach to help you decide if you should purchase a business.  We will advise you on the best valuation methods to be used in negotiations with the seller and we will value the business on those bases.

Agreeing the price is but one aspect of the negotiations.  We can advise you on payment methods to reduce the impact on and risk to your cash flow – stage payments, earn outs, mixtures of cash and shares or loan notes etc.  Can you get the seller to part-finance the deal?!!!