BUSINESS VALUATION

This valuation is based on the future maintainable earnings method.
Please follow the instructions below to obtain the most accurate result.

1. Enter your total sales data for a three year period. It is best if you can use current data so 2010, 2011 & 2012

2. Use the same years of data as sales for your cost of sales.

3. Use the same years of data for your total expenses, however take away any interest and tax paid expenses.

4. The capitalisation rate relates to the risk of a prospective purchaser making his investment back. For businesses in general this is between 25%-30% and for the purposes of this valuation these are the rates you can select. If you believe that your business is a riskier proposition please contact us and we can assist you with a more accurate valuation.

5. Current assets primarily refers to working capital components like Stock on hand and debtors. Please add these figure together for the most recent year e.g. 2013 and enter this figure as one total.

6. Current liabilities also refers to working capital components and for most business you will need to total your creditors and other accruals for the most recent year e.g. 2013