Business Valuation: Discover how to value a business

Whether you’re seeking a corporate business valuation, small business valuation, or are simply wondering how to value a business, let LINK Australia’s appraisal tools do the job! Accurate, refined and perfected over time, our tools are designed to unlock your business’s true value.

Several elements play a role in a company valuation, and the price a potential buyer may be willing to pay. The bottom line is a our business value calculator can give an indication of the price range, however to value a company an indepth business value appraisal involves not only weighting factor, but other key components including risk profile, location and buyer demand. The list goes on!

So, how do you value a business

It’s common for business owners to think that the value of their business is simply net profit or gross sales multiplied by an industry rule of thumb. But what they perhaps don’t realise is that the value of a company’s intangible assets is often far greater than the tangible assets. However, valuing intangibles can be complex and requires expert knowledge and attentive analysis of many business facets. LINK’s expert business brokers can provide comprehensive insight into the valuation process, as well as help you increase your business’s worth to get it ready for the perfect sale.

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Tangible Assets

  • Real estate
  • Plant, equipment, furniture and fittings
  • Debts
  • Machinery

Intangible Assets

  • Goodwill
  • Customer database
  • Trademarks and copyrights
  • Distribution rights
  • A superior management team
  • Non-compete agreements
  • Physical location
  • Brand recognition
  • Special processes

The 4 key elements of a LINK business value appraisal

With a wide spread of brokers and more business sales than any other brokerage globally, we’re able to provide a more experienced report based on analysis of a huge volume of sales.

Economic
situation

It’s crucial to recognise that businesses do not exist in isolation; they are influenced by the environment in which they operate. Our approach considers not only the inherent factors but also the external elements that come into play when determining how to value a business. LINK’s appraisals take into account broader economic contexs at national, regional, and local levels on the valuation date, along with the specific industry conditions in which the business operates.

Accounts
Normalisation

Prospective buyers must gauge how much cashflow they can extract from the business without disrupting operations. Our company valuation appraoch employs various methods to adjust financial accounts, ensuring an accurate representation of this opportunity.

Financial
Analysis

A look at the financial statements of the business, using ratio, trend and industry comparative analysis tools to deliver a more scientific report on the financial state of the business. As the largest business brokerage in the world, LINK looks at industry comparisons both nationally and internationally.

Business
Market Value

Business valuation encompasses three broad approaches, each offering a range of techniques. At LINK, we carefully evaluate all three approaches before making a recommendation on which one to employ for a specific business.

Removing the
guesswork

Here at LINK, we use our award-winning business appraisal tool, VALU.LINK, to provide a detailed and accurate company valuation based on global sales data and finely tuned algorithms. Contact us today for a free and confidential chat.
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Frequently asked questions

All sellers and buyers ask great questions about selling a business. Here are the answers to some we’ve heard before.

A business or company valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. At LINK, we provide business valuations through an “appraisal methodology” to determine the price someone is willing to pay or establish the price to affect the sale of a business.
If you’re looking to determine the worth of your business, our “Online Business Value Calculator” is a valuable tool. It considers various financial factors to provide an estimated valuation.
Our “how to value a business” calculator takes into account essential financial aspects like revenue, profitability, assets, market trends, and industry benchmarks to assess your business’s value accurately.
Our expert team specialises in small business appraisals, utilising their experience and market insights to ensure a precise assessment of your small business valuation.
When it comes to how to value a company, there are several crucial aspects that need to be analysed, including financial performance, growth prospects, market position, customer base, and competitive advantage. Our team of professionals can help you navigate through this process seamlessly.
Valuing a business is a complex task, and it involves various methodologies. Our experienced brokers will guide you through the process, helping you understand the methods used and the factors influencing the final company valuation.
Accurately valuing a business demands a combination of financial analysis, industry knowledge, and market expertise. At LINK, our team utilises a data-driven approach, coupled with years of experience, to ensure an accurate valuation.
Valuing a business requires a deep understanding of market dynamics, financial intricacies, and industry trends. Our team of skilled brokers has the expertise to provide a reliable and unbiased business valuation tailored to your specific needs.
Yes, you can trust the valuations offered by LINK. Our firm adheres to ethical practices, and our experienced brokers employ industry-standard methodologies to ensure accuracy and fairness in every valuation.
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