Chris Brazier, Corporate Finance Director takes a look at the valuation of private companies
Despite all the Brexit noise and contrary to what you might expect, figures show that the volume of deals in the market has remained pretty buoyant.
However, of real interest to vendors, average valuations seem to have gone up, as shown by the UK200 SME Valuation Index.
So it is still possible to sell your business and over the last 12 months we have advised on numerous SME transactions across a wide range of sectors from healthcare to education, manufacturing to event management.
To maximise value when selling your business there are things you need to think about. These include:
- The quality of management team and plans for succession
- The business’s ability to diversify
- Quality of information
- Quality of customer base
- Product / Service differentiators
- Stability of revenue and profits
We regularly work with clients over a period of time leading up to sale. This can be from 6 months up to 3 years or more, to prepare them for that exit event and ensure that, when the time comes, they will maximise the value of the business.