What is a Business Valuation?
A business valuation is a formal assessment of the economic value of a company or business interest. It determines what a business is worth by analysing financial data, market conditions, assets, liabilities, earnings potential and other key factors.
Valuations are essential for mergers and acquisitions, investment decisions, shareholder exits, dispute resolution, funding rounds, estate planning or even internal strategic planning. A credible, objective valuation helps business owners make informed and confident decisions.
- What Does the Valuation Process Entail?
Our approach to business valuations combines financial analysis, industry expertise, and strategic insight to give you a well-supported and credible value assessment.
We begin by understanding the purpose of the valuation, the business model, and the context—whether it is for a sale, merger, funding, dispute resolution, or internal planning.
We collect and analyse relevant documentation including:
• Historical financial statements (typically 3–5 years)
• Current management accounts
• Asset registers and liabilities
• Tax records
• Forecasts and budgets
• Key contracts, leases, and intellectual property documentation
We apply the most appropriate valuation approach depending on the nature and size of the business. Common methods include:
• Income-Based Approaches:
Discounted Cash Flow (DCF), capitalisation of earnings
• Market-Based Approaches:
Comparable company analysis, precedent transactions
• Asset-Based Approaches:
Net asset value, adjusted book value
We assess economic conditions, industry trends, business risks, growth potential, and competitive position to contextualise the valuation.
A detailed report is prepared outlining:
• The valuation methodology
• Key assumptions and adjustments
• Final valuation conclusion
• Supporting analysis and appendices
We present the valuation findings and provide guidance on how to use the results in negotiations, strategic decisions or compliance submissions.
- Clear and Descriptive:
Key Triggers for Business Valuations
When You Might Need a Valuation
• Sale or acquisition of a business
• Mergers or joint ventures
• Entry or exit of a shareholder or investor
• B-BBEE ownership transactions
• Divorce or estate settlements
• Tax planning or SARS compliance
• Strategic business planning and restructuring
• Litigation or shareholder disputes
