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The Importance of a professional Valuation for the Business
"In the valuation of a large company the board, shareholders, corporate advisers and the financial press all have a vested interest in the outcome, so the valuer must employ the best financial techniques and processes to ensure a rigorous and professional result.
Caplink applies the same techniques and processes to the small business market and achieves the same result."
The first question we are asked by a business seller or a business acquirer is “What is the business worth?”
“Kerbside” business valuations or the application of simple earnings multiples can provide fatally flawed estimates of value.
Such short cut valuation methods are potentially dangerous if they result in a vendor selling a materially underpriced business or an acquirer materially overpaying for a business that fails to deliver on performance.
Valuing a business requires great professional skill, experience and judgement to properly consider all the internal and external factors that impact on a “going concern” business valuation. Transaction specific issues such as the type of buyer, the proposed deal structure and terms, relative exposure to the marketplace and the amount of information disclosed all impact on price.
A well-reasoned and commercially realistic business valuation enables our clients to make very well informed decisions.
Click here or call us on 61 3 8847 2100 and discover how we can assist you in achieving an accurate valuation of your business. |
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