Dangers of using an Online Valuation Calculator
It is usually tempting for business owners, potential buyers and even prospective investors to get a quick estimate for the value of a business. An owner would want a quick solution if there is an urgent need for money, whereas investors and prospective buyers would be interested in owning the company as fast as possible. During such times, it becomes easy to turn to an online business value calculator to speed up the estimation process. Though quick, online business value calculators will not give you the same benefits as professional valuers. This is not the only drawback that comes with using a business value calculator on the web.
How to appraise a Small Business
You might want to own a business at one point or the other for different reasons. It could be that you have always wanted to own a firm for the sake of it. Many people found companies simply because it is their dream to found one. Others do it for financial independence. No matter the reason for starting a business, the most common way to come into the ownership of an enterprise is to start one yourself, in which case you are responsible for the business from scratch. However, when you are looking to buy a company from another party, one of the considerations you have to make is the worth of that business. How much should you spend on buying a company? If you are not sure, read these four ways you can use to value a small business for purchase.
How Often Should I Have a Business Valuation Done?
The number of business owners who either do not know or who have the wrong idea about the worth of their businesses is surprising. For the most part, this is because these owners do not place much stock in having business valuations done on their companies. After all, why should they dedicate significant time and resources to a business valuation when they are not ready to sell their businesses? Others may not be interested in knowing the true value of their businesses so long as their firms report profits year after year. However, as a business owner, you need to understand what a business valuation is and why it is important for your business to have one done. Additionally, knowing when to have a formal valuation done on your enterprise could influence the trajectory of your business. Below we will discuss some of the reasons to have a professional value your company and how often to do it.
What is Goodwill in Business?
In certain market situations, particularly in mergers and acquisitions, the term “goodwill” is often used. Goodwill in business is a crucial component of the business valuation process because it lets the acquiring company or simply the acquirer know what they are in for in purchasing the target enterprise. To understand goodwill in business, you need to understand its effect on the operation and acquisition processes. When was the last time you walked into Macy’s or Starbucks? How did you feel about the steep prices you paid for the goods? Did you feel that they worth their price? The answers to these questions should help you better understand goodwill.
My business is worth WHAT?!?!
At the time of retiring the average business owner in Australia does not have a funded pension beyond what they have set aside in their own and their spouse’s Superannuation; most will have a personal residence that has only recently had the mortgage paid off and less will have a significant investment portfolio. Remember, these are averages so your circumstances may be better or worse off. In many situations the family business will be the most significant financial asset available to provide for the owner’s retirement years. You should be asking yourself several questions, but are you ...
Why should I ask if my Business Valuer is licensed?
Most people require the services of a business valuation company at one point or another. If you are a corporate head who wants to retire by selling off your company, you would need a valuation to increase your asking price. A professional valuation would also come in handy for the homeowner who wants to sell off his property or the shareholder who wants to cash in his interest. Valuations are therefore a crucial part of any business. However, sometimes you may feel as if a professional valuation may not justify the cost. Why hire a professional when any appraiser can do the job? Why should you choose a Certified Professional Valuer’s estimation over your own or an unlicensed company’s when you want to sell your stake interest? These are the questions we will be looking at in this post.
Why is a Business Valuation needed when conducting a business merger or sale?
There comes a time when business people have to make a choice about the future of their enterprises. Some of them consider selling their businesses while others would make merging with another company one of the options on the table. During such a time, a business valuation becomes crucial to the company and its shareholders. Determining what a business is worth is however not only crucial to the company about to be sold or merged with. On the contrary, having a business valued offers considerable interest to the parties considering merging or buying out the business. In this article, we will look at a few reasons why this is true.
What to do if you are an overseas investor looking to buy a business in Western Australia
Purchasing a company is a risky investment anywhere in the world, but more so when you are a foreigner looking to buy a business in Western Australia. Business risks are greater for overseas investors thinking of buying a business or a property in the area because they suffer the burden of greater due diligence. Before the sale of a business, its proprietors are responsible for it. Once a legally binding contract is signed, however, those responsibilities fall onto the new owner or investor. This is the reason why investors should ensure they follow each of the steps outlined below before deciding to purchase a business in Western Australia.
5 Key Elements of a Successful Merger or Sale
Good businesses do not stagnate, they grow and expand the breadth of the good and services they offer. Business owners recognize this fact and opt, every once in a while, to engage in corporate restructuring to enable the survival or rejuvenation of their organizations. They may choose to merge or acquire another business, or simply sell their companies to others. With a merger or sale, several key factors play a factor in whether the transaction is classified as successful or not. Read on to find out which five elements are attributable to successful mergers and sales.
How to protect your business from a divorce proceeding
Many people enter marriages with a thought for living happily ever after with their partners, but more often than not, they end up disagreeing over assets in their divorce settlements. In fact, statistics show that almost six in every first marriage end in divorce, whereas the number is higher (about 70%) for second and third marriages. That means that as blissful as marriages are, it is good to ensure you have a backup plan to protect your interests from your partner in case you might split up years down the line. Whether you own an entire enterprise or a small stake in a company, here are a few ways you can use to protect your shares from your spouse before and during divorce proceedings.