What an ac­cu­rate eval­u­a­tion can do for a com­pany’s strat­egy

Weekend Argus (Sunday Edition) - - FEATURES - BUSI­NESS 101 Ben Bier­man

Sell­ing En­list­ing the ser­vices of con­sul­tants who are not only rep­utable but recog­nised ex­perts is a cru­cial com­po­nent.

MOST small busi­nesses own­ers know their com­pa­nies in­side-out. How­ever, they of­ten over­look one crit­i­cal fact – the ac­tual value of the com­pany. They re­view it only when there is an im­me­di­ate need such as rais­ing cap­i­tal, when the busi­ness is in the process of be­ing sold or when one of the share­hold­ers is be­ing bought out. There are, how­ever, sig­nif­i­cant strate­gic ben­e­fits in hav­ing an ac­cu­rate val­u­a­tion on hand through­out the life cy­cle of the busi­ness.

Here are some rea­sons for valu­ing on a reg­u­lar ba­sis: to have up-to-date in­for­ma­tion to help in the ne­go­ti­a­tion process.

Risk

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