| The face of business has changed unrecognizably | | | | That being said, different appraisers can look at |
| in recent years. No longer are businesses for life; | | | | your business in totally different ways. |
| indeed most entrepreneurs are looking to make a | | | | Therefore, who you appoint to do the job is as |
| killing by selling out. Thus, securing a good | | | | important as anything else you may do to make |
| valuation is hugely important, and a good number | | | | the business healthy. |
| can come in handy even when one is not planning | | | | Some tips:o Get a like minded person for the job. |
| to divest. | | | | A thoroughbred accountant is likely to give you |
| If you're looking at selling your business, the | | | | the most pessimistic valuation, since he will be |
| paramount question is what you can hope to get | | | | quite risk averse. If you can, appoint someone |
| for it. Be warned though, that this is one number | | | | who has worked in industry, or better still, has |
| that is not absolute. Differing circumstances and | | | | some experience of running a business, who |
| individual perspectives can have a definite bearing | | | | assigns value to opportunities.o Get a fair price for |
| on the worth that is attached to your company. | | | | intellectual property. A number of businesses fail |
| Even if you're not planning on selling out right | | | | to attach enough importance to their brand |
| away, getting a credible valuation can be quite | | | | names, trademarks and other copyright property, |
| useful, especially if you're trying to rope in | | | | which can actually fetch a good sum. Make sure |
| venture capitalists or strategic partners. Besides | | | | they are included in your case.o Choose an |
| that, it also grounds your optimistic expectations | | | | enthusiast. Look for more than experience and |
| and tells you exactly what you can hope for. | | | | technical skills when you hire an appraiser. If he or |
| So, how does the valuation process work and | | | | she has a personal interest in your line of work, |
| how can you get a great one for your business? | | | | you are likely to get a better result.o Time it right. |
| Professional valuation analysts will want to look at | | | | Choose to get a valuation done when things are |
| the following before they throw up a number:o | | | | looking up in the economy, at the stock-market |
| Assets - including productive assets, intellectual | | | | and for your industry in general. Come what may, |
| property and the order pipelineo Financial | | | | you cannot run away from the basics, so make |
| statements of the past few yearso Employees, | | | | sure your company's future looks good at the |
| customers and other stakeholders - to know | | | | time when the appraiser comes a-calling. |
| what they think about the business | | | | |