What is my company worth is a question that is prompted by a number of concerns that drive one to get different figures. Liquidation is among the factors and so is the desire to attract a favorable response from creditors. Personal matters such as divorce or injection of capital by a new partner could also be reasons.
One should however be conscious of the different tenets that add up to the ultimate value. It may be gotten by the use of an expert or one may do the calculations personally. Of paramount importance is the value proposition or what customers doing business with you get from the business.
The situation in the market is also crucial in the determination. The position you occupy and how well you are projecting to do considering the past and circumstances in future. Your muscle to push your way in order to remain relevant at all times and if the market has better prospects for you are important.
Cash flows are also important as pointers to the profitability or otherwise of the venture. This captures the past and the projections for the future as well as the favorable terms obtainable from creditors. Past engagements with third parties and how much they were ready to inject into your business is a factor.
The level of competition and competitiveness you are offering has a huge impact on final figures. There could have been a takeover of a similar concern and you may use the amount it sold to determine how much yours will attract. The flexibility or rigidity of regulators and how their actions affect business should be factored in.
Handling the question what is my company worth demands that one looks at more issues than one in order to get a comprehensive answer. The value is largely dependent on the reason for valuation which can best be handled by an expert. This will shield you from the danger of overlooking crucial factors that matter.
One should however be conscious of the different tenets that add up to the ultimate value. It may be gotten by the use of an expert or one may do the calculations personally. Of paramount importance is the value proposition or what customers doing business with you get from the business.
The situation in the market is also crucial in the determination. The position you occupy and how well you are projecting to do considering the past and circumstances in future. Your muscle to push your way in order to remain relevant at all times and if the market has better prospects for you are important.
Cash flows are also important as pointers to the profitability or otherwise of the venture. This captures the past and the projections for the future as well as the favorable terms obtainable from creditors. Past engagements with third parties and how much they were ready to inject into your business is a factor.
The level of competition and competitiveness you are offering has a huge impact on final figures. There could have been a takeover of a similar concern and you may use the amount it sold to determine how much yours will attract. The flexibility or rigidity of regulators and how their actions affect business should be factored in.
Handling the question what is my company worth demands that one looks at more issues than one in order to get a comprehensive answer. The value is largely dependent on the reason for valuation which can best be handled by an expert. This will shield you from the danger of overlooking crucial factors that matter.
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