Business Valuation: Discover the value of your business

After dedicating your time, effort, and passion to building your business, you must be eager to know its potential value. However, the question remains: How do you value a business?
There are a number of weighting factors that contribute to the price someone is likely to pay for your business aside from your bottom line, like its risk profile, location, and the buyer demand, just to name a few.

How to value a business

Many business owners believe the value of their business is net profit, or gross sales, multiplied by an industry rule of thumb. However, quite often the value of a company’s intangible assets is greater than the tangible assets. Valuing intangibles requires in-depth knowledge and a careful analysis of many aspects of a business enterprise. As sector specialists, LINK’s business brokers are able to offer advice and insights that will increase the value of your business when it comes time to sell.
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Tangible Assets

  • Real estate
  • Plant, equipment, furniture and fittings
  • Debts
  • Machinery

Intangible Assets

  • Goodwill
  • Customer database
  • Trademarks and copyrights
  • Distribution rights
  • A superior management team
  • Non-compete agreements
  • Physical location
  • Brand recognition
  • Special processes

The 4 key elements of a LINK business appraisal

With a wide spread of brokers and more business sales than any other brokerage globally, we’re able to provide a more experienced report based on analysis of a huge volume of sales.

Economic
situation

A look at national, regional, and local economic conditions existing as of the valuation date, as well as the conditions of the industry in which the business operates. After all, no business operates in a silo and therefore any appraisal needs to consider the environment in which a business operates.

Accounts
Normalisation

Any prospective purchaser needs to know how much cashflow they can extract from the business without unduly affecting operations. Our business appraisal takes several approaches to adjusting the accounts to deliver a fair reflection of the opportunity.

Financial
Analysis

A look at the financial statements of the business, using ratio, trend and industry comparative analysis tools to deliver a more scientific report on the financial state of the business. As the largest business brokerage in the world, LINK looks at industry comparisons both nationally and internationally.

Business
Market Value

There are three broad approaches to business valuation and a number of techniques that can be used within each approach. At LINK, we consider all three business valuation approaches before providing a recommendation on which to apply to a particular business.

Removing the
guesswork

Here at LINK, we use our award-winning business appraisal tool, VALU.LINK, to provide a detailed and accurate company valuation based on global sales data and finely tuned algorithms. Contact us today for a free and confidential chat.
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Frequently asked questions

All sellers and buyers ask great questions about selling a business. Here are the answers to some we’ve heard before.

A business or company valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. At LINK, we provide business valuations through an “appraisal methodology” to determine the price someone is willing to pay or establish the price to affect the sale of a business.

If you’re looking to determine the worth of your business, our “Selling My Business Calculator” is a valuable tool. It considers various financial factors to provide an estimated valuation.
Our “how to value a business” calculator takes into account essential financial aspects like revenue, profitability, assets, market trends, and industry benchmarks to assess your business’s value accurately.
Our expert team specialises in small business appraisals, utilising their experience and market insights to ensure a precise assessment of your small business valuation.
When it comes to how to value a company, there are several crucial aspects that need to be analysed, including financial performance, growth prospects, market position, customer base, and competitive advantage. Our team of professionals can help you navigate through this process seamlessly.
Valuing a business is a complex task, and it involves various methodologies. Our experienced brokers will guide you through the process, helping you understand the methods used and the factors influencing the final company valuation.
Accurately valuing a business demands a combination of financial analysis, industry knowledge, and market expertise. At LINK, our team utilises a data-driven approach, coupled with years of experience, to ensure an accurate valuation.
Valuing a business requires a deep understanding of market dynamics, financial intricacies, and industry trends. Our team of skilled brokers has the expertise to provide a reliable and unbiased business valuation tailored to your specific needs.
Yes, you can trust the valuations offered by LINK. Our firm adheres to ethical practices, and our experienced brokers employ industry-standard methodologies to ensure accuracy and fairness in every valuation.
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