Value My Business
Get your free business valuation
We specialise in manufacturing, engineering and B2B services businesses in Cheshire.
Three out of four business owners that we speak to are eligible for a free valuation.
If you’d like to check your eligibility, fill out the form now.
Get your business valued - start with a 15 mins call
The accuracy of your predictions, regarding the way different buyers would approach the purchase of my business, was quite remarkable.
Anthony Briggs, B11 Education
Free professional business valuations in Cheshire
An imminent sale of a business may not be your reason for needing a valuation. In fact, we get approached by business owners at different stages of their directorship. A need to sell a business is just one of the reasons that may be driving your curiosity.
You may need a valuation when taking out an insurance policy. Correct valuation will ensure you don’t overspend on premiums and your insurance provider will be satisfied that contract conditions are met.
You might be experiencing differences in management style or company direction among your fellow shareholders. You may want to see what your options are when it comes to buying each other out.
Another situation may be that you wish to reward your staff or get them more involved in the running of your business by gifting a number of shares to them.
A lot of the time, you might be going through difficult and unforeseen personal circumstances, like divorce, illness or death in the family. This may force you to free up cash held in the business.
Finally, you may just want to benchmark where you are now in order to establish clear goals for the future growth of your business – either just for yourself and other shareholders, or for potential investors.
With so many different reasons and so many different business exit strategies, approaches of exactly how your business is valued may need to change.
Our valuation process starts with a phone consultation. In this initial chat, usually around 20 mins long, we establish some principal information about your business. We focus this first conversation on how you run the business and why customers are buying from you. We will also ask about some basic financial and operational facts.
From this, we are able to confirm whether your complete valuation is eligible to be free of charge. We are then ready to take things forward. We ask you for some more detailed financial information. This will involve complete sets of unabridged company accounts for the past two years or so. If you’re using an automated accounting system, this should be as easy as exporting the data. If not, we’ll talk you through exactly what we need from you and how best to get the information.
We then spend about a week evaluating all the data we’ve received from you, as well as additional information we’re able to get via Companies House, via our trusted partners and via online research on both you and your competitors. Any research we undertake with third parties maintains full confidentiality for your business.
During that research phase, we may require a follow-up call to clarify any further questions.
Valuation is not simply based on your turnover or profit. We take into account various criteria in relation to our experience of the market. We also put ourselves in the shoes of potential buyers and how attractive your full package will be to them.
Once we analyse all data in its context, we are ready to give you the final valuation and the reasoning that led us to arrive at the figure.
Below is a summary of the information we usually request:
- Business name and location.
- How long has the business been established and have you owned it continuously?
- What products or services do you sell?
- How do you acquire your customers?
- Do you have any contracts in place – with customers or suppliers?
- Are you reliant on particular suppliers to create what you sell?
- How many staff are employed / self-employed?
- Do you own or rent your premises – or do you work from home?
- What is your role in the business is as the owner?
Additional questions may come up as we delve into your unique set up during our initial or follow-up call.
Online business valuation tools are a convenient way of getting a ballpark valuation for your business. These are essentially web forms that ask you for information and use a formula to calculate what your business could be worth.
Generally speaking, you input the sector your business operates in and what your turnover and profit have been. If the tool is more sophisticated, you input these figures for 2 or 3 years. Even more advanced engines will ask you to identify extraordinary costs or income that is not usual for the business.
Algorithms are mostly based on calculating business value based on this financial information, adjusted by your business sector. As a result, the valuation you get may give you a general idea of what your business could be worth.
Web-based calculators fall short when it comes to detailed business evaluation. They usually provide a figure which is accompanied by a disclaimer. The waiver says that there are many factors that influence a sale price. Essentially, your business value represents what potential buyers are willing to pay and this is hard to measure with a few set metrics.
This is where a professional business valuation can provide a more comprehensive assessment. By taking into account business operations, detailed financial analysis, market considerations, location and business buyer experience, you are more likely to receive an accurate estimate.
We use formulas to calculate your business value but we use many different factors to adjust our figures to make sure we give you a realistic assessment. Each valuation also comes with an explanation of how we arrived at your figure.
Once we’ve received your financial accounts we are normally able to complete a valuation within a week. Your result will depend on how quickly you’re able to provide all the information and how complex your situation is.
You will be provided with a value range (e.g. £100,000 to £120,000 or £2.5M to £2.7M) for what we believe your business can achieve if sold on the open market today. This will be provided to you in writing in a document sent by email.
We back this up with a high level explanation of how we arrived at that value, summarising the things which work in your business’s favour and those which work against it. If you’re using your valuation as a benchmark, it’s a great opportunity to get third party analysis of your business’ potential and possibilities for growth.
Our feedback is delivered firstly by phone for speed, followed by an email so you have a reference. We can then arrange any follow-up meetings if you want to delve deeper still.
Your valuation is usually the start of a journey towards increasing the value of your business and then selling it on. You are able to take our valuation and advice and continue growing your business or you can continue the relationship to see how else you can get support in moving on from your business.
We are business valuation experts and Certified Value Builders. This means that we actively support our clients in increasing their business value over a period of a few years. On average, using the trademarked Value Builder System we use adds 71% value to a business at the point of sale. This can mean selling your business without compromises, opportunities to invest in new and exciting ventures or a comfortable retirement.
Whether you’re looking to sell your business now or you’re starting to consider selling in a few years’ time, we want to make sure that the businesses we talk to have the right information to maximise their business value.
Our valuation comes with no obligations. Only if they choose so, we stay in touch with the businesses that we help to guide them on their exit journey. You can use the information we give you to help you make the decisions that are right for you or you can take advantage of our proven methodology that regularly adds an average of 71% value to a business, before it is eventually sold.
If you’d like to know how much your business is worth, leave your details below and we’ll arrange a time for the initial consultation. Three out of four business owners that we speak to are eligible for a free valuation.