Figuring out how to get an accurate business valuation may seem like a daunting task, as there is a lot of information required to get one. If you’re looking for a business valuation, contact us to organise a meeting and to be referred to our broker partners. Here are some things that you should make sure to have prepared when you are looking to get a business valuation.
Legal Information
When you are receiving a business valuation, you should make sure that you have all of your legal information sorted. This includes documents like leases and insurance policies, as well as registration papers like business name certificates, licenses, and permits.
Finances and Assets
It is also important that you have all of the information regarding your finances and assets ready. Make sure that you have your financial statements prepared from the previous five years if possible. This includes cash flow statements, debts, annual turnover, and profit and loss statements. Also have details of physical assets and details of other assets, including things such as machinery, buildings, and goodwill.
Business Profile, Procedures, and Plans
Make sure that you have all of these things organised. This includes your market conditions, sales information, business history, business procedure documentation, and any business plans.
Staff, Supplier, and Customer Information
Be aware of all of your employee details and supplier details, along with customer details such as numbers, profiles, and direct marketing activities.
What Else Should I Know About a Business Valuation?
A business valuation can include an analysis of a company’s management, its capital structure, its future prospective earnings, or the market value of its assets. The most common approaches to business valuation are a review of financial statements, discounting cash flow models, and comparison to similar companies.
Business valuations are necessary for various reasons. These reasons include:
- Transactions: Exit planning, buy-sell agreements, ESOPs, equity financing, etc.
- Tax reporting: Gift and estate tax, charitable donations, c-to-s conversions, etc.
- Financial reporting: Purchase price allocations in acquisitions, goodwill impairment testing, portfolio valuations, derivatives
- Litigation: Marital dissolutions, shareholder disputes, economic damages
Getting a valuation for your business does not have to be as difficult as it may sound. Contact us to get a quick and easy valuation for your business and to be connected to the top experts in your field. Our broker partners will be more than happy to help you figure out the value for your petrol station.