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Business Valuation FAQ

Below follows a selection of the most frequently asked questions relating to our Business Valuation service. We trust the information will be of value to you. If you have any additional questions, please feel free to contact us directly.

What are the methods used to value a business?

A business valuator will value your business using three approaches and related methods to calculate the value of your business:

Asset approach
– Net Book Value/Net Asset Value
– Liquidation Value

Market approach
– Market Capitalisation

Income approach
– Times Revenue
Earnings multiplier such as price-to-earnings (P/E) ratio
– Discounted Cash Flow

Due to different assumptions used in the various methods and approaches, the business value can differ depending on the methods used, who the valuator is and the investment goals that need to be achieved. A combination of the methods is used, and each is given a weighting. An average is then taken based on the weighting of each method to determine the fairest value of the business.

What experience does Grid Forensic Accounting have with providing business valuations?

Our valuation experts are chartered accountants (SA) and have multiple years of experience in providing business valuations for small to medium enterprises, in particular.

How long does a business valuation take to perform?

Depending on the level of analysis required, our business valuations can take between one and four weeks. This will be discussed in greater detail with you directly, once all the details of your circumstances have been considered.

What level of business valuation should I choose?

This is directly related to the reason for the valuation. It is recommended that an initial obligation-free consultation is conducted to determine the recommended level to best suit your requirements.

How much does a business valuation cost?

Fees may vary depending on the complexity of your situation, the amount of documentation required for assessment and the extent of any relevant investigations. Because everyone’s needs and situations are so different, it is not possible to provide an exact cost. We can, however, assist by reviewing your information at our initial consultation and provide an estimated cost on request. No charge will be made for this review should you not continue with our services.

Read more about our Business Valuation service.