Do you know how much your business is worth? No? Well then it’s high time you got a valuation! Without this, you will never know what your business is truly worth, and if you don’t know that, you can never adequately sell it. The reason for this, of course, is because no one in their right mind will buy a business that does not have a valuation certificate attached to it. Or they will, and they will try to swindle you out of the true value of the business. Either way, you need a valuation conducted in order to have total peace of mind.
Valuations come in different forms, because at each turn, the intention is different. The nature of the business will also be different as well.
Let’s differentiate
Here are some of the different types of valuations that you can expect to deal with:
- Big business Company: This type of valuation will look at your stock market presence, as well as your assets and possible mergers or acquisitions. This will give you an accurate idea as to how much your company is really worth. These types of valuations are necessary, because at this level, there are many parts of the company to be sold. You can sell shares on the market, you can also sell divisions of the company, or merge with another establishment. In each case, the company taking over needs to know what they are getting into.
- Small companies: Here, there are no public listings to look at, more just the overall assets of the company and value of the accounts that the company holds, if any. These will help the valuation consultant to determine the overall value of the company. This is a very simple valuation.
- Plant valuation: Here, there are physical assets that are taken into account. The value of the machines that you have, as well as how they have all been performing, will be taken into account. If they are still in good working order, you will have no problem getting a certain value for them. If, however, they are old and derelict, the value of your whole operation will decrease. When it comes to plants, the zoning also gets looked at, as it plays a crucial role in how much people will eventually end up wanting your land.
Always make sure that your valuation consultant is legitimate and that they have gone through all of the necessary steps in order to become certified. If not, your certificate of value will mean nothing and you will be unable to qualify for business insurance or anything of that nature.
