What is your business worth on the market today? The actual price you will get for your business will depend on the numerous market factors when you sell. Factors like: you (the vendor), the buyer, the deal structure, the market conditions, the availability and cost of debt (e.g., a bank loan), how many competing (similar) businesses are for sale, your advisors, their advisors, how well the buyer understands the opportunity, and how motivated you are to sell. Lots of moving parts to get right.

A Business Valuation gives you a sense of the value of your business now, and also provides you with an understanding of the key drivers that impact the value of your firm going forward. There are a number of different approaches to valuing a business – dependant largely on the profession of the valuer and the methodology they employ.

We model our business valuations on the approach and style of the Uniform Standards of Professional Appraisal Practice (USPAP).

In most cases, our business valuations are undertaken on a Fair Market Value basis for the entire business. Even where other standards of value are warranted, we generally use the Fair Market Value as a starting point.

Fair Market Value (FMV) is the the cash (or cash-equivalent) price at which an asset would change hands between a willing buyer and a willing seller, both parties being adequately informed of the necessary facts, and neither party being compelled to buy or to sell.

The Fair Market Value is an estimate of the value of the business on the market. It is an independent, objective assessment free of any personal attachment or biases that people inside (or close to) the business may have.