Directors' Briefings
Corporate Finance (CF)
« Back to Directors' BriefingsValuing a business (CF 1)
The bottom line
The two questions ‘How much is your business worth?’ and ‘How can you make it more valuable?’ are of paramount importance to any business owner.
This briefing summarises the main issues involved. It is aimed at anyone buying, selling or simply running a business, who needs to understand how businesses are valued.
The worth of a business hinges upon how much profit a purchaser can make from it, balanced by the risks involved. Past profitability and asset values are only the starting points. It is often intangible factors, such as key business relationships, which provide the most value.
The briefing outlines:
- The uses of valuation.
- Key factors affecting the value of your business.
- The standard methods of valuation.
- How to calculate profit for the purpose of valuation.
Buying a business (CF 2)
Going ahead
Buying a business can be a big step forward, or it can turn out to be disastrous. This briefing assumes that you have already found a suitable business (the 'target business').
It explains how to complete the purchase of the target business, including checking what state the business is really in.
The main pitfalls tend to be similar, regardless of how large the target business is.
The briefing covers:
- Approaching the target business.
- Completing due diligence.
- Negotiating the purchase.
- Settling the purchase once it is completed.
- Back to top
- page: 1 | 2 | 3 | Next »
