Tag: independent business valuation perth

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.

Exploring formal and informal Business Valuations

An increasing number of business owners are realising the necessity of valuing their businesses regardless of their size. All business owners have, at some point, wondered about the value of their business. As long as you own an enterprise, time will come when you will have to either find out its legitimate value or get an expert to advise you on its estimated value. You will need to choose between getting either a formal or informal business valuation. That said, this guide helps you understand what both terms mean and the different times to apply either valuation.

Does your business partner need to leave your business for health reasons? Here’s what to do.

There is no question to the fact that leaving a business can be one of the most difficult choices you have to make. Whether it is as a result of personal issues, disagreements or even for health reasons, the journey through leaving your business partnership is likely not to be an easy one. However, your mental health and happiness are essential. With that in mind, staying in your business may be doing more harm than good. In case you feel like you do not want to continue working on your business, there are a few things you can do to help the dissolution process take a lesser toll on you, your partner and the enterprise you worked so hard to help build.

Are you looking to leave your business partnership? Here are some points to consider.

There is no question to the fact that leaving a business can be one of the most difficult choices you have to make. Whether it is as a result of personal issues, disagreements or even for health reasons, the journey through leaving your business partnership is likely not to be an easy one. However, your mental health and happiness are essential. With that in mind, staying in your business may be doing more harm than good. In case you feel like you do not want to continue working on your business, there are a few things you can do to help the dissolution process take a lesser toll on you, your partner and the enterprise you worked so hard to help build.

Is your business valuation firm independent? Are they compliant?

Business valuations can be done for many purposes. You may be planning to sell your business, one of your partners may be leaving, or you may be undergoing a divorce that requires the sharing of assets. Alternatively, you may just want a business valuation to help you get an accurate view of the worth of your business. This could spur new strategies in your production, management and how you engage customers so as to increase profits and improve the business’s value. Going to the right business valuation firm based on your reasons for seeking a valuation is almost as important as the process itself. This is especially so if the reason for your valuation involves legal action. For such reasons, it is essential to seek services from a valuation company that is both independent and compliant.

Are you a business owner looking for a change in your career or your life? A business valuation is a good place to start.

It is not surprising for the average person to want a change in career over seven times in their lifetime. Think of the number of times you switched career or even major options in your college life. For many, career or major changes have marked fulfilling turning points in their lives. For others, however, a change in career resulted in tears, frustration or regret. As such, it is critical that you get through a shift in your occupation with a plan. A full-proof method not only ensures your change in career is smooth but also enables you to excel in the profession you choose. Consequently, you can live a better life overall and fulfill your dreams. If you are a business owner, the leap is far greater since you leave an already-stable environment to an area you are not accustomed to. However, we are here to help. Here are some tips to kick-start your campaign towards a new career.

How to value your business to make sure you have the right level of insurance – you could be overpaying!

Insurance companies have been proved notorious for setting their customers higher premiums than they ought to pay. Every business owner knows the importance on keeping a company’s spending to a minimum. Spare revenue can be used to improve different sectors of your business or be saved in case of emergencies or short-notice needs. Unfortunately, overpaying on your premiums means you are denied the chance to make these savings. Clearly, this is a situation no owner wants to be in. Insurance firms base the rates they charge you on the value of your business. If you do not know your enterprise’s value, then there is no way you can know if you are paying the right rates. Here is how you can assess your business today and ensure you do not get overcharged for insurance services.

How to buy your Partner’s share of the business

Obtaining the equity your partner owns in your business can be a confusing or often difficult process. Perhaps your counterpart in the firm could have gotten an opportunity elsewhere that he wants to focus on or, as is also common, there has been a personal conflict, and the two of you cannot stand each other. Business partnerships could end for many reasons. Some of the endings to partnerships could be peaceful and lead to the best benefit of both flanks under the situation. Alternatively, some partnerships' endings involve pain, tears and a whole lot of lawsuits. Regardless of what kind of way the business ends, the tips below are necessary so as to ensure that you successfully buy out your partner.

Business valuations when going through a divorce

You do not have to wait until the divorce goes through to start making settlement arrangements. Even if the share of the business you claim was under the other person’s name and you did not make direct financial contributions, you are still entitled to a piece of the ‘pie’ according to Australian law.

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