Here at Business Vision, as experts in business valuations, we specialise in accurately valuing SME businesses across every industry sector ranging from pubs to hotels, from manufacturing to filling stations, and everything else in between.
But our professional experience aside, the main question that almost every business owner will ask us at our very first meeting is the one that really cuts to the chase:
“How much is my business actually worth?”
And although we can’t provide an answer to this complex question at the outset of the process. The key indicators that we will examine, audit and analyse, in respect of the individual business in question, are as follows:
Some guidelines we use to determine the value of a business.
FREEHOLD RETAIL
In the sale of freehold retail, convenience stores and supermarkets, factors such as weekly turnover, location of the property, condition, potential for expansion, threat of new entrants, competition and gross margin after turnover are all important factors.
LEASEHOLD
The valuation of leasehold of a similar retail business is based on turnover, gross margin, and the condition of the shop, terms of the lease, location and future potential.
MANUFACTURING & DISTRIBUTION
Valuation of a manufacturing / distribution business is based on asset value (fixed current assets), jobs in progress, multiple of net profits and future value.
CAFE / DELI / FOOD RESTAURANT
The valuation of a Cafe / Deli / Food restaurant business is based on turnover, gross margin, net profits, condition, location, footfall, fit-out and contents.
SERVICE BUSINESS / PROFESSIONAL SERVICE
The value of a service business is usually based on a percentage of annual turnover fees, net profit & earnings, profile and customer base.
LARGE SECURITY / CORPORATE CLEANING COMPANIES
Valuation is based on turnover, multiple of net profits, and the residual income from long term contracts. The profile of the customer base and net assets can also be a factor.
PUBLIC HOUSES
The valuation of these businesses are best based on turnover, location of the property, condition, potential for expansion and development of the site and the mix of turnover – food / drink / off-licence sales.
HOTELS
Valuation of a hotel is based on turnover, number of rooms, condition, location, profitability and occupancy.
