Finance Matters - How to Value a Business

Published: Thursday 27 June 2013

Whether you wish to sell or buy a business or operating division, Hazlewoods can provide a realistic, objective assessment of its market value.
The valuation of a privately owned business depends upon a number of relevant factors, taking into account commonsense, informed judgement and reasonableness.
 
There are traditionally four valuation methods;
  • Price Earnings (P/E) based valuations;
  • Net asset based valuations;
  • Dividend yield based valuations; and
  • Discounted cash flow base valuations.
 
In practice, a combination of methods are used, e.g. a multiple of sustainable profits, with a debt/cash free adjustment.
 
If you want expert business valuation advice, talk to us. Whether you are considering a merger, acquisition, joint venture, disposal, flotation or reorganisation, we are ready to help.
 
For further information on how to value a business please download our How to Value a Business Factsheet.