Business Value – Registered Business Valuers at Benchmark
Benchmark Business & Commercial Sales are uniquely positioned to provide clients with business valuations. Unlike many accountants, Benchmark’s accredited business valuers have actual current market data available to refer to when assessing the market value of a business.
Our team includes Registered Business Valuers working in Queensland, New South Wales, and in Victoria – and therefore Benchmark offers clients fee-based advice on business value, and provide business appraisal and valuations under engagement, across three states. With many years of experience and training – our team has the knowledge and understanding to assist in providing clients with market based business valuations and appraisals.
In general, the value of a business will rely on an analysis of the company’s cash flow, future risks, future opportunities, market demand and sales evidence. At Benchmark we have many years of sales data (evidence) to call upon to support the assessed business value
The capacity of a business to generate consistent profits will ultimately determine its worth in the market place. Businesses are as unique and complex as people who run them, and are not capable of being valued by a simplistic rule of thumb, or application of a formula. If a formula (or methodology) is to be applied to assess value, it must be done with regard to a number of variables, and in accordance with the market data available.
Some of the common methodologies used to determine a business valuation are:
- Asset realisation
- Capitalization of Super Profits
- Capitalisation of Future Maintainable Earnings
- Discounted Cashflow
- Multiplier or market valuation (Rule of Thumb)
- Return on Investment method
There are numerous ways of valuing a business. Some are more subjective than others. Whichever method is used to determine the value of a business – at the end of the day market forces prevail. Therefore a business valuation should refer to the market – not theoretical calculations – but market based evidence. That is what our business valuers do – we apply current market data to determine business values. We have over 1000 of our own sales to refer to – and additionally, we are a part of a national network which stores data on business sales, which can be called upon in analysis of each business valuation.
With a Business Valuation from Benchmark’s “Business Valuer” division you can be assured that the result is a reflection of the real market value of the business.