What is a valuation anyway?
More specifically, it is a process applied by professionals in co-operation with their client to carry out an in-depth analysis of the business market value. The process also provides an in-depth breakdown of a business' strengths and weaknesses; where a business may need to improve, and which direction a business can take moving forward.
A business valuation is useful for determining fair value from a buyer's perspective, but is also useful for succession planning, financing, estate planning, resolving shareholder disputes, and so on.
The process of valuation a business involves performing a deep dive into the company, looking at factors such as market position of the company, the operations and growth prospect, the management team, and many, many more key areas.
It is used in determining the fair value of a business from buyer’s perspective. Business Valuation is majorly used for mergers/acquisition and sale of a business. It is also used for succession planning, financing, estate planning, resolving shareholders dispute and so on.
What goes into determining value?
Valuing your business is a process that requires meticulous, detailed analysis. No detail of your business is left out when determing its value, however there are key areas that every business owner should expect to factor majorly into the valuation.
- The current state of the industry
- The financial standing of the company
- Growth potential
- Market conditions
- External factors
- Intangible assets
- Circumstances
All of these key factors are taken into consideration when a valuator provides multiple valuation methods, each focusing on a different key area.
- Asset-Based Valuation
- Earning Value Approach to Valuation
- Market Value Approach to Valuation
By combining the key factors above while tackling the valuation from three different angles, a business valuation is guaranteed to provide you an in-depth, holistic understanding of your business - both the value and its standing in the market.
Here is how we can help
We have an experienced team of business valuators that understand the challenges and sheer amount of analysis that goes into valuating any business. By using CTL, you are getting the full CTL process.
We mainly utilize the three valuation methods detailed earlier: asset-based, earning value approach, and market value approach.
These three methods factor into our complete process:
By utilizing this approach, we compare clients’ business to similar businesses that have recently sold. Once the method has been chosen, we provide a written report that contains recommendations and implementations on the maximum value of your business.
CTL Business Group will test the value against the market and make a report that contains estimated economic value of the interest in a business.
So what does this mean for you?
It means that by using CTL to valuate your business, you receive years of experience, and valuators that understand why a valuation is key to the success of any business.
Our motto is that every business should be successful, and we are passionate about looking out for the past, present, and futures of all businesses.
Still unsure? Get a FREE VALUATION today to get the ball rolling.
Or if you prefer, check out our special offer below
