“Each business owner should have a clear picture about the value of his company.”
Unfortunately, this topic is often neglected. A thorough valuation is however the cornerstone of each succession-planning and a must before starting a business transfer process.
There are many misunderstandings about the valuation rules. A too theoretical approach, or a flattering amount which is not based on solid numbers, can cause important damages in the negotiation process.
- What about you ? Do you know how much is worth your company ?
- And how will this value evolve in the coming years ?
At FB-Transmission, we compare several valuation methods with each other and apply them with judgement, i.e. not in a one-size-fits-all manner. It is indeed important to convince not only the seller, but also the potential buyers that the proposed value is fair and can be financed. If not, the whole exercise is a waste of time.
Don’t hesitate if you want more information on this issue.