Business Valuation

"The question was whether we were still the best owners of this business. Maybe it was worth more to someone else?"

<p style=”font-size: 18px;”>Business is an eternal balancing of risk, returns and investment. Families need a robust methodology for business valuation that does not diminish the importance of emotional elements.</p>

<blockquote style=”font-size: 18px;”><span style=”font-size:24px; font-weight:bold”>“</span>As a second generation family we identified with FINH that, whilst family members did work in the business, the Next Generation were not committed to the responsibilities of on-going ownership. It was decided to identify a strategic buyer and with FINH we negotiated a very healthy exit price that was far beyond our initial expectation. The new owner had exciting plans that offered our staff better long-term career opportunities. If I had understood the methods that FINH used in the valuation and negotiation process well before that point, I am very confident that decision-making and management would have been more scientific with even better outcomes.<span style=”font-size:24px; font-weight:bold”>”</span></blockquote><!–mep-nl–><p style=”text-align: right;”>Managing Director of a software development and distribution company.</p>

<p style=”text-align: center;”><strong>Business valuation is always a healthy mix of art and science. A methodology that incorporates all of the facts within a commercial framework is paramount to making better investment decisions.</strong></p>

David Harland
Managing Director, FINH

Striving for a higher business valuation is important for a growing and diversified family group. The transition from local to global operations is a competitive windfall for healthy, well-capitalised family businesses. A realistic business valuation helps families make informed, responsible decisions about their capital allocation.