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Business Valuation
Ever wondered if you’re paying too much when buying a business – or if your established business is truly worth what you believe?
If you’re facing one of those challenges, our business accountants based in Perth can help provide a clear, data-driven picture of what the business is worth.
The Problem
When it comes to buying or selling a business, knowing its value is essential.
- For Buyers: You need to determine a fair offer and ensure you’re not overpaying.
- For Sellers: You want to set the right price, identify improvement opportunities and prepare for sale, succession or merger discussions.
With various valuation methods available—each considering different factors like cash flow, net assets, multiples and market comparables—it can be overwhelming to know where to start.
Our Solution
At Munro’s, our team of business accountants in Perth can use valuation methods tailored to your unique circumstances, either to provide a quick, simple estimate of your business’s value or a more comprehensive assessment.
Key Benefits & Outcomes
- Data-Driven Decisions: With multiple valuation methods at our disposal, you receive an evidence-based estimate that empowers you to negotiate confidently, whether buying, selling, merging or planning a succession.
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Specialist Guidance: Our team of dedicated business accountants in Perth are not only skilled in numbers—they’re problem solvers. We can take the time to understand your business’s challenges and offer tailored advice for how you can increase your business’s value.
Read Key Points & Transcript
SME Business Valuation in Perth, WA
video key points
- Understanding your business’s value is essential before contemplating a sale, and while valuation methods vary, it’s crucial to choose one that aligns with your business’s unique attributes.
- Different valuation methods focus on factors such as discounted cash flow, EBIT or asset value, and the choice of method can greatly affect the valuation outcome.
- Industry-specific multiples can guide valuation, but they should be adjusted for your business’s specific characteristics like risk profile, customer base and growth prospects.
- Crafting a compelling story that justifies the business value is vital in securing a realistic sales price.
- To increase your business’s value, consider implementing profit improvement and strategic growth programmes.
- For further guidance, start with our spam-free Selling a Business Diagnostic on our website to get tailored insights and prepare effectively for a successful sale.
Presented by: Saul Segal
video transcript
What is your business worth?
It’s a question every business owner contemplating sale should have an answer to.
Valuing a business isn’t straightforward, but, it doesn’t have to be overly complex.
There are several methods that could be used to value a business.
Some valuation methods focus on discounted cash flow, others on EBIT or post-tax profit, and some on asset value.
Often, a “multiple” is used. A slight change in the multiple can lead to significantly different valuations.
It’s crucial to understand what is being multiplied. For example, in some industries, it’s common to use a multiple of 2-3 times EBIT, while in others, a multiple of around 1 times revenue is typical.
However, just because a multiple is commonly used in an industry doesn’t mean it should be adopted for your business. Unique attributes such as your business’s risk profile, customer base, growth prospects, or the broader economic conditions might justify a different multiple or method.
Ultimately, valuing a business is about finding a realistic sales price. For owners looking to sell, it’s most importantly about crafting a compelling story that justifies that value.
Notably, there are steps owners and managers can take to increase their business’s value. See our video “Get Ready to Sell” for a short list, with profit improvement and strategic growth programmes being particularly important initiatives.
At Munro’s, we employ a variety of methods to help our clients value their business and prepare it for sale. If help like this interests you, then we suggest starting with our spam-free Selling a Business Diagnostic, accessible on our website.
Thereafter, come meet with us, and we can work together to help achieve your goals.
We look forward to helping you soon.
Frequently Asked Questions for Business Valuations
- How do you determine what a business is worth?
We use a multi-method approach. By analysing industry comparables, the business’s specific financial performance and asset value, we can provide a balanced and data-backed estimate of your business’s worth. - Can a valuation help me decide on an offer when buying a business?
Absolutely. A quick valuation is often undertaken before you express your interest to the seller (if enough data is available at that time) and provides a quick sanity check. Ideally, prior to the formal purchase contract (or sometimes during due diligence), a comprehensive valuation can help you determine the exact purchase price that is fair and reasonable. - How long does the valuation process take?
This depends on what type of valuation you need. A simple valuation report can be completed within a matter of days, whereas a comprehensive valuation can take several weeks, depending on the complexity of your business and the availability of data. - How can a valuation support my succession planning?
Understanding the true value of your business can be a key part of succession planning. A business valuation helps family members appreciate the value of the business and what is fair for succession to benefit all sides. - What do people say about Munro’s business accounting services?
In our 100+ five-star Google reviews, our clients frequently highlight our responsiveness, specialist advice and the peace of mind we provide. - Are your accounting and valuation services available Australia-wide?
Yes. While Munro’s is based in Perth, our business accounting and valuation services can be used throughout WA and across Australia. - What is the price for your business valuation service?
Our pricing is transparent and reflects the complexity of your needs. Please visit our pricing page for more information or contact us for a personalised quote. - How do I get started with your services?
Book a free Get to Know Each Other meeting and one of our business accountants will meet with you to discuss your needs and the best way forward.
Where To Begin
Come Along To An Improve Session
First Session is FREE (incl. GST)
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Perth WA 6000