Business Valuation

Understanding the value of your business is an important factor when making decisions for the future of
your business, not just when you are looking to retire or realise some of the equity in the business.

 

 

Value = (Revenue – Expenses) x (Growth – Risk)

 

Some of the potential scenarios where understanding the value of your business is important include:

  • Potential divestment strategy
  • Internal sales of equity
  • Equity participation / reward plans
  • Restructure of business entities
  • Bank funding applications
  • Construction of Return on Investment analysis
  • Strategic business planning

Seaview Consulting provides specialist advice in the area of business valuation. We have a track record of delivering successful outcomes for owners of financial planning businesses.

We provide an independent robust valuation process aimed at delivering to business owners a clear understanding of the value of their business. Our approach is to utilise the historical and forecast financial information for the business to determine its maintainable revenue position.

Additionally, we undertake an analysis of the operational capability of the business to determine the relative risk of the enterprise which enables us to determine an appropriate capitalisation of the revenue.

Our modelling approach identifies the key drivers of value for the business and equips the business owner with knowledge of what drivers deliver the greatest uplift in value.

We overlay a Net Asset valuation of the business assets to determine whether the shareholders are receiving an effective rate of return on the assets employed and if not what growth in profitability needs to be achieved to provide appropriate risk / return reward.

Our forecasting tools and modelling allow us to prepare predicative valuation models that give the shareholders an understanding of what future values may look like based on a number of scenarios. This is of particular use where business growth strategies are being considered, succession planning or future divestment strategies.

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Business Valuations