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How many times profit is a business worth? Is it 5?

Ever wondered how much your thriving business is worth? While there’s no one-size-fits-all answer, profit plays a crucial role in the valuation equation. This blog post delves into the world of “profit multiples” and how they influence the perceived value of your company. Future Maintainable Earnings Method Imagine a valuation Continue reading

Does debt destroy a business’ value and sale?

Understanding how debt factors in can empower you to navigate the valuation process with confidence. The Enterprise Value Equation One of the most common methods for business valuation is Enterprise Value (EV). This metric goes beyond simply looking at a company’s stock price. Instead, it paints a holistic picture by Continue reading

Goodwill: When your successful company has none

Imagine this: you’ve built a thriving company, a testament to your hard work and dedication. But when it comes to selling, the concept of goodwill throws a curveball. Here’s the deal: this intangible value might not be a factor for your business, and that’s okay! What is Goodwill, Anyway? Goodwill, Continue reading

Backed Valuation Multiples by Industries

Understanding valuation multiples by industry is a critical tool. However, it’s essential to wield this tool with a keen eye. While EBITDA multiples offer a starting point, relying solely on them can lead to skewed results that fail to capture a company’s true value. Why Valuation Multiples Need Context Valuation Continue reading

5 Big Impacts of ESG Factors on Business Value

What is ESG? Environmental, Social, and Governance (ESG) factors are increasingly shaping the way businesses operate and are evaluated. In simpler terms, ESG is a framework that considers a company’s commitment to the environment, its social responsibility, and its overall governance practices. These factors are no longer seen as separate Continue reading

The X-Factor of Business Value: Why Are Some Worth More?

When it comes to buying or selling a business, understanding its true business value is crucial. While profitability is certainly a key factor, there’s a hidden X-factor that can significantly impact a company’s worth. Let’s delve deeper into the five essential elements that determine a business’s true value: 1. Market Continue reading

Future-Proofing Your Business: How Great Valuations Can Help

In today’s dynamic business environment, staying ahead of the curve is paramount. But how do you gauge your company’s preparedness for what lies ahead? This is where business valuations step in, acting as a powerful tool for future-proofing your organization. Valuation Strategies for Future-Proofing Business valuations encompass a range of Continue reading

Succession Planning for WA Businesses – Best Practices

Family businesses are the backbone of Western Australia’s economy, carrying a rich tradition and a unique set of challenges. One of the most crucial aspects of ensuring a family business’s longevity is a well-defined succession plan. Why Succession Planning Matters Statistics paint a concerning picture: only 43% of Australian family Continue reading

The Value of Intangible Assets in Your Business

Investopedia describes an intangible asset as: a non-physical asset such as a patent, brand, trademark, or copyright. creatable or acquirable by businesses indefinite, such as a brand name, legal contract, or agreement Financial statements often focus on the tangible: buildings, equipment, inventory. These assets are crucial for any business, but Continue reading

Expert Business Valuations: 5 Great Questions

Thinking about getting your business valued? While selling your company might be the first thought that comes to mind, a business valuation offers a surprising range of benefits beyond just a sale price. In this Q&A session, a business valuation expert sheds light on the true potential of valuations and Continue reading

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