Confident Investments, successful exits, value adding business decisions, in recent times have all indicated their affinity towards Valuation or Value of a Business. Why has it become very important for an entity to know their business worth? Whether you plan to run your business for a long time or you plan to exit it in short time, it is crucial for you to know the worth of your business. If you are aware of what your business is currently worth, it aids you in planning what value your business should reach at the stage when you intend to exit. In some cases, ascertaining the value of business is a statutory requirement.
Valuing a business involves analysis of various complex factors, value drivers, in-depth industry knowledge and technical expertise to put them all together. Valuation is not just a number; it is a value which eventually a buyer would want to pay to buy your business or invest in it. Arriving at a wrong value or arriving at a convenient value would be definitely detrimental. Over valuation creates a myth of higher value and blind the Company from working on their weakness while Under Valuation would increase the pressure on the Company to improve their Valuation.
Factors which influence Valuations includes Purpose, Estimating the future growth, Business factors, Underlying assets, Financial factors, Position in a business lifecycle, External factors, Sustainability, Management Capability, Risks Involved.
Our team of experts can not only arrive at the business value but can also help you with the strategy of improving your value over a period of time.