Business Valuation

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

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.
“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.” Managing Director of a software development and distribution company.

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.

David Harland
Executive Chairman, FINH

Striving for a higher business valuation is important for a growing and diversified family group. The succession 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.