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PRODUCT 2: The Suitegum Market Business Valuation

The Suitegum Market Business Valuation considers all aspects of your business addressed in the KVI evaluation, and relates those KVI scores to financial specifics, by way of multipliers, denominators, and sums; with justification. We avoid thumbsucking.

If you plan to dispose of your business or equity, this valuation will give you a good idea of where the selling price of the business should be pitched, if the business is placed on the market. It will provide you with details on where the strengths and weaknesses would be in a negotiation for the best deal.

We aim to have you well informed as to your options with respect to finding a suitable buyer or investor, if this is your intention. There is no pressure for any transaction at all if the results of the valuation do not fit into your greater plan.

Use cases
  • Exit planning

  • Divorce settlements

  • Equity allocation and dissolution

  • Negotiation guidance

  • Key man insurance

  • Long term incentive schemes & ESOPs

  • Purchase offers
The cost of this Market Business Valuation is R25,000. Payment options are as follows:
  1. A single payment upon completion of the valuation. You will be sent a redacted version of the valuation as evidence that it has been done. The readable and complete valuation report will be made available as soon as funds are cleared in our account.

  2. Two payments of R9,500 each (24% discount).
    • The first payment with the valuation order
    • The second before presentation of the valuation report.

  3. A single payment with the order with a discount of 30% at a cost of R17,500.

  4. Three payments of R7,500 (10% discount):
    • The first with the order
    • The second following the valuation interview
    • The third before the presentation of the valuation report.

These payment terms are consistent with standard 10 of the Uniform Standards of Professional Appraisal Practice (USPAP) which requires valuers' remuneration to be independent of appraisal results, and not compromised in any way by the figure arrived at.

Requirements
  1. Full financial statements for the last four years
  2. The management accounts for the period since the last financial statements
  3. To conduct a detailed interview process (probably telephonically) with a responsible person in the business, ideally a director, shareholder or member
  4. There may be other requirements which become apparent during the process.

We generally work on 10 working days to complete a valuation, provided everything is available. If a faster turnaround time is required it puts our other clients and ourselves under pressure. We therefore charge a premium on any of the above options of 10% per day required below 10 days, to a maximum of 5 days reduction, and 50% premium.

To be clear, if a seven days turnaround is required: 3 days below par means a (3 X 10% = 30%) in addition to any of the price plans quoted above. It is extremely difficult to work faster than 5 days for all sorts of reasons.

If volume is important to you, then the valuation is typically about ten pages, has an analysis of the business, and points out strengths and weaknesses in a sale situation. We will brief you on areas which may need attention in preparation for an actual sale. This helps a seller prepare for buyer questions prior to the buyer getting to the business. We describe in some detail the working of the valuation, and this can be followed quite easily. As a rule, our market valuation is within 10% of an eventual selling price.

Select a different valuation product:

1. Key value indicator (KVI) evaluation
3. Diligent business valuation & evaluation

Back to Valuations...Back to Valuations
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If you require a professional, realistic, market-related valuation of your business please call 011 083 6663 or complete the form and submit it.


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"Mark gave me a valuation on my business, but couldn't assist in finding a buyer due to the geographical logistics, so he handed me over to a local business broker. This broker gave me a much higher valuation, having done a Swedish massage on the figures I supplied. I was thrilled at the prospect of getting what I thought was a reasonable sum for a little business, so we pitched it at the local broker's valuation.

Three buyers, much negotiation, a final signature on a piece of paper. Cloud 9! Days and days went by, the deposit was paid, the due diligence was conducted, and whamo! The buyer came back and said he was unhappy with the valuation, could we renegotiate?

Now, being a reasonable person, I 'pouted diplomatically' but finally, we have settled on the valuation Mark gave me in the first place. As he says, the best deals are done when neither side is too happy with the result!

I guess I just wanted to say that we should be sensible and realise that our businesses aren't quite as valuable to others as they are to ourselves."

Barbara Hilton-Barber

 

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