How can I determine what my business is worth?

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There are generally 3 different approaches used in business valuation:

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• Income approach
• Asset-based approach
• Market approach

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As you can see, there are different ways to determine what a business is worth. Each technique has its own advantages and drawbacks, and these must be considered when applied to the valuation of your company.

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The starting point in producing a business valuation report normally starts by a valuer looking at your statutory accounts. The last 3 years of trading will normally be reviewed, together with up to date management accounts and a budget / forecast for the current year. It is likely that whoever is undertaking the valuation will have detailed questions. As with most businesses and their owners, there are many variances so you will need to be able answer all these questions to ensure the valuation report provides a fair and realistic figure for your company.

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Cartwrights long standing experience of business valuations is something you can rely on!

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