Get a Free Market Appraisal

Getting an up-to-date and confidential market appraisal is an essential first step if you are considering you options. Its free of charge and provides valuable insights into present market conditions, recent business sales evidence from your industry, and what we think your business would sell for at the time.

If the appraisal meets your expectations and you wish to press forward with a sale, then the appraisal value provides an evidence-based guide for you to consider when setting the asking price.

If you decide not to proceed toward a sale at this stage, then undertaking a market appraisal remains a worthwhile exercise, as it provides valuable information and insights about your industry and current business performance, so that you are fully informed.

If the appraisal indicates that the potential sale price is not favourable/does not meet your expectations, and a hold position is best, we can work out what incremental income is required to achieve your desired price. This approach provides you with a clear exit-strategy goal to work towards, which can greatly assist in making decisions in the future.

From our perspective, after completing the appraisal we can’t presently assist you with the sale of your business, we hope to do so in the future some time, having established a good working relationship.

What is needed to complete an appraisal?

We will need some historic financial information, an understanding of your lease or tenure arrangements, and a current fixed asset/chattels schedule.

Having received and reviewed the information we will then call to ask you a few value impact questions. We will then present our formal report within a week for discussion.

If the appraisal meets your expectations and your preference is to go ahead with the sale of your business, we will proceed with onboarding and listing your business, having discussed the best approach to marketing and a sales strategy that will achieve the best result for you.

What if the Appraisal Value of my business is too low for me?

If the outcome of the appraisal does not meet your expectations, and a hold position is advisable, we can work out what incremental income and/or expenditure pivots are needed to achieve your ultimate desired sale price. We can also assist with a number of valuable ideas/suggestions based on our former business experience to achieve these changes. This provides you with a clear exit-strategy goal to work towards, which can greatly assist in making decisions in the future.

What determines the value of my business?

While there are many areas that will be considered, cash flow and risk are probably two of the most important factors.

A buyer typically purchases a business for future income, and this can be expressed in many ways, such as: EBIT, EBITDA, free cash flow, or owner’s discretionary earnings. Bottom line, the more cash flow there is, the more the buyer will be likely to pay.

All cash flow comes with a degree of risk. Risk may be present in customer concentration, reliance on vendor relationships, macro-economic trends, competitive forces, key employees, legal exposures, etc. A formal appraisal will include an analysis of other company’s sold in the same industry with cash flow and assets that are within as close a range as possible to the business being appraised. From data available to us on other businesses sold that are similar, we are able to establish an appraisal that will give us an accurate idea of what someone would be willing to pay for your business.