Business Valuations

Most business owners do not accurately perceive the real value of their business and the advantage of a professional business valuation conducted by an independent source.

Business valuation is as much an art as a science. ABCO provides a sophisticated business valuation service, calculating the maximum price and correct terms necessary to successfully marketing your business in a given market. Utilizing complex value techniques, we position your business in the best possible price range based on market conditions and sales potential within your marketplace. While we do employ standardised formulas and methods to calculate the value of a business, we also work from assumptions that are based upon our experience and our familiarity with similar businesses in the marketplace. In this way, our applied expertise leads to the best calculation of value for a specific business.  

• 3 to 5 years of business tax returns or profit-and-loss statements

• Current year-to-date profit and loss statement

• Current balance sheet

• The approximate value of furniture, fixtures, equipment, and inventory

• Adjust the Income statements in order to eliminate non-cash expenses, debt service, and non-business expenses to determine the true cash flow of the business
• Analyse the trends in sales, expenses, cash flow, and financial ratios
• Use discounted cash flow (DCF) valuation and ratio-based valuation techniques, etc to position your business in the best possible price range
• Employ techniques to check valuation results using mathematical relationships with other valuation models
• Perform an analysis of a company’s underlying business and its environment
• Assess the potential for the market share to increase, decrease or remain the same in the future