Business Valuation Calculator
A Business Valuation Calculator can help you to estimate the value of your business.
How do you use a Business Valuation Calculator?
Business Valuation Calculator helps you to estimate the current Business Value for Businesses in general. Additionally, Business value is the aggregate of all the future earnings expected from a business discounted to reflect their present value. Asset Valuations Group uses a measure of earnings called EBITDA when valuing a business. EBITDA stands for Earnings Before Interest Tax Depreciation Amortisation. Once you calculate EBITDA, you then apply the relevant multiple to calculate a business value.
Does a Business Valuation Equal Market Value?
Yes, it differs from market value, which is what buyers are willing to pay for a whole business at a given point in time. Asset Valuations Group do not use an online calculator, but rather spreadsheets to determine the business value. We also use market evidence and business risk assessments.
What does a Business Valuation take into Account?
A Valuation can also take into account non-financial factors, such as the expected quality of customer service or potential effect on other business activities. For example a manufacturer’s impact its suppliers’ and distributors’. We use IBIS World reports to understand what industry you are in.
Who requires a Business Valuation?
Business valuations are a necessary component of many transactions. In Australia, the Australian Securities and Investments Commission (ASIC) requires an independent opinion from experts on how much your company is worth if you’re going to be merging with another business or being bought out altogether.
Owners selling their companies also hire third-party advisors to ensure that they receive fair market value. Business values often change over time: as a business grows and expands its operations, developing new products or services while strengthening customer relations through advertising campaigns for example!
Try our Business Valuation Calculator to learn more.
If you require a business valuation, contact us here!