How We Can Help You
V Business and Property Network assists in all phases
of the transaction, linking initial analysis, planning, valuation,
marketing, the qualification of prospective purchasers, negotiation,
due diligence and ongoing interaction until the transaction is successfully
Our services include, but are not limited to, the
Assist Seller in establishing a MPSP (Most Probable Selling Price)
Buyers for ability to complete a purchase
Develop a comprehensive
business overview to present to potential Buyers
confidentiality of the sale
deal management to guide the Clients through the entire process
Valuating a Business
The two primary most widely used and accepted types
of valuations are:
consider the business to be a collection of assets that have a marketable
value to a third party in an asset sale. Asset valuations are typically
used for businesses that are ceasing operation and for specific types
of businesses such as holding companies and investment companies.
Asset valuation methods include the book value method, the adjusted
book value method, the economic balance sheet method, and the liquidation
are based on the premise that the current value of a small business
is a function of the future value that an investor can expect to receive
from purchasing all or part of the business. Income valuations are
the most widely used type of valuation. They are generally used for
valuing small businesses that are expected to continue operating for
the foreseeable future. Income valuation methods include the capitalization
of earnings method, the discounted future income method, the discounted
cash flow method, the economic income method, plus other formula methods.
Value vs Price
A business’ value does not always
equal all its assets, but rather the profit and cashflow that those
assets can generate. ~ Bryan Hayden
The value of a business, by whatever business valuation
method it is obtained, is not the selling price of the business. The
price is determined in the market by a Buyer and Seller coming to
an agreement. They are not the same.
As Warren Buffett said, "Price is what you pay; value is what
Most Buyers will require some of the following documentation:
Audited financials or management accounts covering three to five years.
Copies of income
tax returns and assessments.
agreements, hire purchase agreements, and franchise agreements.
list of plant and machinery, furniture and fittings, and equipment.
A list of stock
(inventory) will also be required.
If a particular potential Buyer is serious, it would
make sense to provide any information that will assist us in closing
the deal and obtaining your price. NO information is disclosed to
a Buyer unless he/she has signed our non-disclosure agreement.