business valuations
At Cherry Black we believe it’s people first. When it comes to valuations for your business many believe it’s all about the bottom line, but here at Cherry Black, we know that’s just not the case. Firstly, we establish the reason for the valuation, assess your industry, recognise the qualitative factors, and clearly define the risks. Additionally, we work with you to understand why your business should be valued in the first place. Starting a new venture or leaving a business can be a daunting experience, and Cherry Black values your business hopes and dreams and the reasons you may want to sell or buy a business. We start with what YOU need from us, not the other way around.
Scenario 1: Selling your business
So you’ve been up and running for a while now. You’ve got wind in your sales, cash in the register, and you want to sail off whilst the sea is still calm. But where do you begin? We start with establishing the reason for the valuation, assess your industry, recognise the qualitative factors, and then clearly define the risks. You need to understand why your business should be valued in the first place, and by diving into the nitty gritty of it all, we can foresee any potential speed bumps ahead.
Scenario 2: Acquiring a new business:
You’re ready to make your dream a reality and are enthused and motivated, and are keen to start achieving it. But before you accelerate head first into your new business, you need to check if the business is a well oiled machine or a patched up wreck. We provide you with transparent advice so you can run the enterprise of your dreams and avoid the nightmare of a failed business.
Whether you’re buying, selling, restructuring or simply striving to improve your business, there are different valuation methods that we apply to each individual case. These include:
Valuation of the business assets and goodwill
Valuation of the shares / units in a business
Once we’ve got your method sorted, it’s time to talk qualitative factors – after all, your business is more than just numbers in a spreadsheet. That’s why when you deal with us, we’ll address the key factors that impact your day-to-day operations, including:
Industry
Business growth
Business risk
Competition
Customer base
Market demand
Staffing
Management information systems
Succession plans
As you can see, while the bottom line is definitely important, there are other factors at play and ignoring them can result in a valuation that is essentially, well, worthless.
If you’re after an independent valuation that provides you with not only a dollar figure, but the objective value of your business as a whole, get in touch with us today.