BUSINESS VALUATION
Benefits of Performing Business Valuation By Adie Gupta
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n general, businesses grow overtime and so should the value. But how do you measure that? Undergoing a business valuation process can help you answer that question. Business valuation services can be extremely important in certain contexts. Let us look at these contexts in some detail in this article. Selling A Business or Shares When selling a business or company to a third party, one needs to make sure that what is obtained is fair value or at least what the market may be prepared to pay ie. its market value. The asking
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HB ADVISOR | JULY - SEPTEMBER 2021
value should be appealing to potential buyers but should not undervalue the relevant business or the company. Undergoing a proper business valuation process enables equity owners to know the value of their shares and ensures they are prepared to sell when the time comes. Business owners should verify that no money is left on the table and that the shares are valued fairly, just as one would when selling a property or an asset. Buying A Business Even though sellers and buyers often disagree on the value of a business
or company, the ultimate value is determined by what purchasers are prepared to pay. A robust business or company valuation will look at the history of the relevant business or company, market circumstances, projected income, comparable companies or businesses, consider economic and market parameters, risk and opportunity factors to help ensure that the investment one is considering making is viable. Business valuation therefore becomes paramount before buying any business or company. It is prudent to engage an experienced business valuer to provide
