There are several approaches commonly used in the valuation of privately owned businesses, some more easily understood than others. In most cases, the type and number of approaches used varies according to the individual business being valued.
Common methodology includes income capitalisation, rules of thumb specific to particular industries, super profit capitalisation, discounted cashflow and annuity methods. Each have principles that vary on a case by case scenario. In most instances, a number of methods may be considered in a single valuation.
As an alternative to the full valuation process, Robertson & Robertson offers a consultancy service where the scope of works is limited and appropriately qualified. This service may be more suitable where factors other than the market value of the going concern are of primary importance. Fees in this case would be determined having regard to the scope of works on a case by case basis.
Robertson & Robertson has 38 years experience in providing specialised valuation advice. If you are a business owner looking to sell or purchase or are seeking valuation advice for taxation or legal purposes, please CONTACT US.
