Selling or buying a business can be a stressful and daunting experience. It usually occurs once in a life time and involves a large financial transaction. This is the reason why it is not only wise, but essential, that a business valuation be prepared professionally preceding any negotiations for a business sale or purchase.
There is really only one opportunity for a valuation for a successful business sale or purchase. Not doing it right first time could be very costly in terms of a loss sale or purchase or an under-valued sale or over-valued purchase.
It’s best to have a business valuation prepared professionally and independently from the very outset rather than waste time and money and undergoing unnecessary stress or even facing the possibility of losing a significant business opportunity.
There are thousands of Baby Boomers who currently operate businesses in New Zealand. They will soon be selling their businesses for retirement or succession. It will be critically important for this generation to have their businesses valued as soon as possible so plans for their retirement or investments can be made. The value and ultimate sale of their businesses will determine how comfortable their retirement will be as the sale is likely to be tax free. A professionally prepared business valuation will determine a realistic and sound value rather than a guesstimate or one based on hope.
For the business Seller a professionally prepared valuation could mean a significant difference to the sales price and therefore how well the seller will benefit after the sale e.g. to fund a new investment or for retirement.
For the business Buyer, a business valuation could make a significant difference to the way the business purchase is negotiated or financed and therefore affect the return on the investment.
An independently prepared valuation is appropriate and fairer to all parties in the case where there is a business or businesses to be shared or divided between family members. This removes any bias in favour of a particular family member or members and maintains neutrality which is most important in family circumstances.
This referral is provided free under our business valuation service options.
This referral is also provided free under our business valuation service options.