Why Do You Need a Business Valuation?

You can’t rely solely on a good product or service to survive in today’s business climate. With all of the complexities of running a business, you often don’t know what you don’t know.

In the last 40 years, small businesses have more than doubled. That’s a lot of competitors, and to stay afloat, you need to be on top of your game. Your operations and finances need to be healthy and well-managed.

And that’s where a business valuation comes into play.

What is a Business Valuation?

Business owners juggle dozens upon dozens of responsibilities. Often, it feels like hundreds. Time and money are always lacking, and it’s hard to know what areas need attention. But if you want to grow your business, you must invest into strategic growth planning to have a chance to achieve your business targets and get the best value for your business in the long term.

Companies close for numerous reasons –  mergers and acquisitions, bankruptcy, competition — but one of the main reasons is poor financial management. An audited business valuation can help you not only identify the value of your business now but also can help identify problems before they even arise.

Business valuations are like X-rays for your business. It will look at everything and anything that has to do with the health of your business, from operations to finances and assess its strengths and weaknesses. 

Why Would You Need a Business Valuation?

Of course, if you want to enjoy better profits, you must invest. But is investing in a business valuation really something you need? Will it benefit you in the long run? How much will you have to wait to start seeing tangible results?

To give you a simple answer: yes, you need to invest in business audits. Here are some of the scenarios where you may want to consider getting a business valuation:

  • If you’re looking for investors: A good way to show potential investors you’re serious about your business is to prove that you understand the company’s financials. With a valuation, you’ll have a detailed report of your company’s financials that you can show to investors, giving them the assurance and transparency they need.
  • If you want to secure a loan: For many businesses, loans represent the only way to get ahead and grow. Of course, a lender will want proof that you can pay back the loan with interest. A business valuation can be the tool that helps you get a loan and unlock your company’s full potential.
  • If you want to sell your business: A business valuation is an essential element of the process for those looking to exit their business. Like lenders, potential buyers want evidence that the financials are in order.

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How Much Does a Business Valuation Take?

Once you decide a business valuation is something not only beneficial but much needed for your business,  you may want to know how much time you need to invest.

The length of a business audit will depend on the size and complexity of your company. Although, for the most part, a business audit could take a few weeks, it can be longer if you have more complicated operations.

If you want an Audited Business Valuation by experts and decide to work with Boardroom Advisors, here’s what the process will look like:

  • One of our representatives will schedule a meeting to discuss your business needs
  • We’ll collect the necessary documents and review them in preparation for the audit
  • After five business days, you’ll receive a comprehensive audit report

How Much Does a Business Valuation Cost?

The cost of a business valuation depends on the size, number of employees, cash flow, and other factors. As a client of Boardroom Advisors, you can expect the following pricing:

  • Businesses from £100k to £3m turnover: £1995 +VAT
  • Businesses from £500k to £5m turnover: £2995 +VAT
  • Businesses from £5m and £10m turnover: £4995 +VAT

If you have a more complex operation and need a more detailed audit, we can certainly provide that. We will do our best to accommodate your budget and create a package that works for you.

Get an Audited Business Valuation Today

Have you ever done an audit before? If not, it’s time to invest in one. With an audit, you get a detailed report of your company’s financials that can help you identify potential problems and make better decisions.

If you’re looking for a reliable company to handle your business valuation, Boardroom Advisors is here to help. We have the experience and knowledge to deliver valuable insights that lead your business towards success.

Contact us today to get started with your audit.

Written by: John Courtney

John is highly ranked in the Top 100 UK Entrepreneurs list by City AM and is winner of the Lifetime Achievement Award from techSPARK. He has been a Board Director himself for over 40 years and first started placing Non-Executive Directors over 25 years ago. John founded and ran seven of his own businesses including a Management Consultancy for 10 years, a Corporate Finance offering for 10 years and a mid-sized Digital Agency for another 10 years.