(Image credit - HubSpot AI image generation tool - the task was to create an image of a man walking in a used car sales lot “kicking the tyres” - just like a web site business valuation tool, this one slightly missed the mark!)
There are quite a few web site and free business valuation services available for a 'very quick and dirty' business valuation these days, however, we will highlight two factors below that make speaking to a professional advisor worth the investment:
1. Qualitative inputs
Most valuations done by professional advisors will take several days or weeks to complete. That not because they are delaying the process or lack knowledge or resources. It is because in order to conduct a thorough valuation, a lot of other factors needs to be taken into consideration.
One if these inputs is an appreciation and understanding of the market the business operates in, the management quality, succession planning, operating cycles, etc. These are qualitative factors that would be extremely difficult to assess as part of an algorithm. It requires skills and knowledge and a subtle amount of professional judgement, that only a professional advisor can deliver.
2. Quantitative analysis
To a greater degree of accuracy, an algorithm can be programmed to assess the financial and risk management metrics of a business; however, again, the algorithm is limited at looking at a set number of metrics, not a wider 'kick the tyres' set of inputs that make a business valuation a useful tool to assess an exit value for a business owner.
Therefore, should you want a more useful business valuation conducted of your business, with additional benefits of a set of options and solutions to maximise your exit value, should your exit plan no involve an immediate disposal; then consider speaking to a professional advisor to firstly assess the time frame and rationale for the valuation and secondly, to assist you an devising a set of action points or a plan to work on maximising your exit value for the point at which you plan to exit, then please consider a no obligation 30 minute chat to one of our advisors at the Financial Executives Group LLP.
Alternatively, book a call via the "Contact us" link in the header of our web site.
We look forward to discussing your future exit strategy with you.
