Business Presentation

How much is it Worth?

There is never a ‘right’ answer in terms of business value – ultimately the value of any business is the amount a buyer is prepared to pay for it (and over what time period). However there are useful methodologies that can be applied and act as guidance, depending on the type and size of business and we provide a short overview of each below:

Investment Chart

RETURN ON INVESTMENT

Often referred to as ‘adjusted EBITDA’ method, the business is valued from the perspective of the return an investor would make on their purchase. Suitable for:

  • Larger profitable businesses

  • A number of employees

  • Owner performs an MD type role

Office

NETT ASSET VALUE

There are occasions when the value derived from an ‘adjusted EBITDA’ methodology generates a valuation that doesn’t reflect the inherent value in the Balance Sheet and then a Net Asset Value approach may be more appropriate:

  • Businesses with high levels of fixed asset / stock

  • Businesses with underperforming profits

  • Businesses invested for growth with barriers to entry

Surfers

LIFESTYLE BUSINESS

Appropriate for smaller businesses, with perhaps only a few employees and where the owner is required to work full time in the business, generating a comfortable lifestyle income for themselves:

  • Smaller businesses

  • Sole trades & partnerships

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WHAT PEOPLE SAY

Man with Beard

NICK SPERRYN-JONES

"Maree and John have sold several franchises for us. They are hard working and professional and I would reccomend them to anyone looking for a broker."

ELIZABETH GORE

"I have worked with The Brokerage Connection and its master franchisees for a number of years. John McSweyn is a true gentleman of the business world. He is a formidable negotiator and certainly someone you want on your team when buying or selling a business

GARY

"Matt was very helpful throughout the purchase of my business. I was kept up to date with all aspects of the sale. I have had bad experiences with Business agents previously. I would recommend Matt Butcher and The Brokerage Connection highly for their professional approach and handling of the sale."

Man with Beard

NICK SPERRYN-JONES

"Maree and John have sold several franchises for us. They are hard working and professional and I would reccomend them to anyone looking for a broker."

ELIZABETH GORE

"I have worked with The Brokerage Connection and its master franchisees for a number of years. John McSweyn is a true gentleman of the business world. He is a formidable negotiator and certainly someone you want on your team when buying or selling a business

GARY

"Matt was very helpful throughout the purchase of my business. I was kept up to date with all aspects of the sale. I have had bad experiences with Business agents previously. I would recommend Matt Butcher and The Brokerage Connection highly for their professional approach and handling of the sale."

Man with Beard

NICK SPERRYN-JONES

"Maree and John have sold several franchises for us. They are hard working and professional and I would reccomend them to anyone looking for a broker."

ELIZABETH GORE

"I have worked with The Brokerage Connection and its master franchisees for a number of years. John McSweyn is a true gentleman of the business world. He is a formidable negotiator and certainly someone you want on your team when buying or selling a business

GARY

"Matt was very helpful throughout the purchase of my business. I was kept up to date with all aspects of the sale. I have had bad experiences with Business agents previously. I would recommend Matt Butcher and The Brokerage Connection highly for their professional approach and handling of the sale."