The quality of earnings.
Start with reliable financial statements and a clear explanation of unusual items. Look at how income is earned, the costs required to sustain it and whether recent performance reflects a typical operating period.
THE VALUE CONVERSATION
What is your business worth?
Let’s find a starting point.
What is your business worth? Start with a considered review of the business, the evidence behind its earnings and the terms of a possible sale.
Start a confidential conversationWHAT DESERVES ATTENTION
Look at the business.
Then at the price.
The strength of the operation.
Customers, suppliers, staff and systems influence what another owner would inherit. Consider concentration, contract continuity, key-person dependence and the work needed to keep delivery consistent when you step back.
What the transaction includes.
An operating business, its cash, debt, inventory, equipment and property are not automatically one package. Define the proposed scope before comparing values or offers, and ask your advisors to explain the implications.
The terms behind the price.
Cash at closing, later payments, financing conditions and transition commitments can produce different outcomes even when the stated price is the same. Compare the complete proposal with your advisors.
PREPARE FOR A USEFUL DISCUSSION
Start with
what you know.
For an initial conversation, tell us the business type, location, your role and when you might consider selling. You do not need a completed valuation to begin exploring your options.
Later, your advisors may ask for financial statements, details of unusual expenses, customer concentration, asset information and the commitments a new owner would inherit. The scope depends on your business and the purpose of the review.
Read the business value guideA LITTLE MORE CLARITY
Good questions.
Straight answers.
Can you tell me the value of my business from revenue alone?
Revenue alone is not enough for a meaningful valuation. Costs, earnings, assets, risk, customer relationships and transaction terms can change the picture substantially. Start with a discussion of the business and the records available, rather than an automatic formula.
Is an asking price the same as a formal valuation?
No. An asking price is part of a proposed sale strategy. A formal valuation is an assessment prepared for a defined purpose and scope. Ask whether you need an appropriately qualified independent valuator for financing, shareholder, tax or other specific requirements.
Do I need to send financial statements through this form?
No. Use the form to introduce yourself and your business. Detailed financial records should be shared later through a suitable process agreed with the people reviewing them.
Does my city determine the multiple?
Location may affect customers, staffing, premises and buyer interest, but it does not create a single multiple for every local business. The company’s financial and operating characteristics need to be considered alongside the proposed transaction.
YOUR NEXT CHAPTER STARTS HERE
Ready for
your next
big move?
Start with a confidential conversation about selling your business. A few details are all we need to begin.
A confidential first conversation
Space to explore your options
No commitment to list your business