Written on the 21 October 2013 by Queensland Government
Valuing you Business
by Queensland Government
There are many reasons to determine the value of a business. Knowing what a business is worth is necessary when you are:
•buying a business
•selling a business
•selling a share in a business
•getting a business loan
There are different ways to value a business, some more complex than others, and each method has its advantages and disadvantages. Valuations are usually based on a combination of methods.
Because buyers and sellers often have different ideas about what a business is worth, it is a good idea to get a business broker or professional valuer to assess a business. A well-prepared, balanced and independent valuation can help speed up negotiations and offer a more complete picture of a business's value.
This guide provides an overview of business valuation, including the information you need to gather and the most common methods of valuation.