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VALUATIONS
Business Vision have expert consultants in specialist business sectors
to carry out an accurate valuation of a business. When an owner of a business
decides to sell, one of the main questions in his/her mind is how much
is my business worth? There are many factors that determine a Valuation
and the valuation process is often referred to as a skill or art of Science.
Various formulas and techniques are used but the basic principal however
at the end of the day is 'A business is only worth what someone is prepared
to pay for it '
To determine an accurate valuation, comparative methods of similar businesses
which have sold give good indicator however many different business sectors
have industry formulas which are useful guideline.
The following are indicators of how the following businesses are valued:
Freehold Retail
In the sale of Freehold Retail, Convenience Stores and Supermarkets factors
such as weekly turnover, location of the property, condition, potential
for expansion, threat of new entrants, competition and gross margin after
turnover are all important factors.
Leasehold
The valuation of a leasehold of a similar retail business is based on
turnover, gross margin, the condition of the shop, terms of the lease,
location and future potential.
Manufacturing/Distribution
Valuation of Manufacturing/ Distribution business is based on asset value
( Fixed current assets) jobs in progress, multiple of net profits and
future potential.
Cafe/Deli Food Restaurant
The valuation of a cafe/deli food restaurant business is based on turnover,
gross margin, net profits, condition, location, footfall, fit-out and
contents.
Service Business - Professional Services
Valuation is usually based on percentage annual turnover fees, profile
and customer base.
Large Security Sector businesses such as Security companies or Corporate
Cleaning companies.
Valuation is based on turnover, multiple of net profits residual income
from long term contracts, profile of customer base and net assets.
Pubs
Valuation of a pub is based on turnover, location of the property, condition,
potential for expansion and development of the site and the mix of turnover
- Food/Drink/Off-license sales.
Hotels
Valuation of a hotel is based on turnover, number of rooms, condition,
location, profitability, occupancy.
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