Business Valuations

There are several ways to value a business; the best valuation method depends on your type of business.

Businesses which year in, year out, generate healthy profits are often valued at a multiple of earnings. 

Mature, cash-generating businesses can be valued on cash flow. That is future cash flows are estimated and then discounted - this is known as the discounted cash flow (DCF) method.

An asset-based valuation might be appropriate for stable businesses with significant tangible assets - property or manufacturing businesses, for example.

The cost of creating a business similar to yours can also be used as a basis for valuation. By this we mean trying buying the equipment, employing the staff, developing the products, attracting customers, and so on, and by conducting this exercise you could find the true value of a business which you are trying to sell or buy.

At FENCI we can help identify the best valuation method and guide you through the buying or selling process. 

Press & Media

  • Strategy, Structure and Systems

    A business needs to constantly re-evaluate and tweak (sometimes even revolutionise) how departments are structured, how people are organised and how systems are aligned. 

  • Talent Wars

    Good talent is hard to find and great talent is even scarcer. The problem doesn't end there: companies need to work extra hard to retain their best talent. 

  • How Strategy can help your business

    The days of detailed and elaborate Strategic Planning are over. In fact, some would argue that Strategy and Planning are a misnomer anyway. 

  • Digital Addiction

    People today, apparently, suffer from: FOMO (fear of missing out), FOBO (fear of being offline) and nomo-phobia (fear of being out of mobile contact). 

  • Career Setbacks

    In today’s day and age, it is becoming increasing ‘normal’ for all managers, even the high fliers, to suffer a career setback. Only the very lucky or the extremely well connected escape this harsh ... 

  • Delegate or Relegate

    It literally is impossible, when in a senior management position, to do everything yourself. You either delegate the task or you effectively relegate it. 

  • Business Bias

    Decisions in business are inevitably loaded with bias. By ‘business bias’ I mean that managers tend to be prejudiced in favour or against one thing usually in a way considered to be unfair or... 

  • The Organisation

    I cringe with embarrassment as I watch Sepp Blatter declare to the rest of world that he wants to clean things up at FIFA, as if he wasn’t the organisation’s president for the past 18-odd years.