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Business Valuation

T.C.T.C. Experienced MentorRegistered, Tutor Posts: 1,448
in General accounting discussion
Who specialises in valuation of a small business? My client is self-employed with a strong client-base and needs to sell this within 6 months as he is emigrating.

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    What industry?

    I have a client in the IT industry who is selling up and has an excellent agent on board. I'm sure if he can't help he will know someone who can?
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    I've just been valuing a small business.

    although its a very inexact science.

    I took the last 3 years statutory accounts, the next 3 years forecast, took an average (although you're supposed to put more weighting on future profits).

    Then used this link: http://biz.yahoo.com/p/sum_conameu.html

    to find the industry average price to earnings ratio, along with P/E ratio's for other similar companies.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Thanks. I have just realised that business valuation is one of the core modules that my son is studying at University, so have asked him to have a look into it for me (good practice for him!).
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