Valuing a Business or a Company –what is the difference?

image

People often confuse the valuation of a business and the valuation of a company. So what is the difference? The valuation of a business is really an assessment of what the business would sell for on the open market – at any given point in time. The valuation of a company is totally different. The valuation of a company includes …

“Overvaluation” is a common problem when selling a business.

Value Price Puzzle Concept

Many people think “This business owes me $500,000, so it must be worth at least that much, or ” “’I’ve been working on this business for 10 years – so it must be worth a lot of money” – but in reality the business value is really about the cash flow of the business. This news comes as a disappointment …

How do you know that a business valuer is qualified?

HiRes

It is surprising to many people to know that business valuations are not regulated in Australia. There are a handful of qualifications, but no formal regulation of business valuation exists…… yet. ** At present there is no universally accepted course or qualification for business valuers in Australia. There are some qualifications such as: The Australian Institute Of Business Brokers Registered …

“Online” Valuation Tools – the benefits and the dangers

HiResb

It is possible to sit down at your computer and find an “online” facility that will produce a “business valuation”. Such an option seems like an attractive way to determine the value for a business. It’s quick, it’s cheap, and it’s confidential. When a business owner wants to have a quick idea of what the business might be worth, such …