The valuation of a business is typically
associated with a change in share ownership or structure,
or with a business being sold.
The fair market value is defined as "the
amount at which a business would change hands between a willing
seller and a willing buyer when neither is acting under compulsion
and when both have reasonable knowledge of the relevant facts."
When valuing a business there are a number of issues to assess
including:
- The dynamics of the sector in which the company operates
- The unique attributes of the company
- How the company compares with similar businesses
- The market perception of the business
Grant Thornton's wide experience in Business
Valuation means we can give you an informed indication of
what your company may be worth. We will fully explore the
many considerations involved and making a proper assessment
of your company's current financial position.
Breach of Contract and Loss of Profits
A valuation may be required when a breach
of contract or a business interruption has resulted in the
demise of a business or has had a prejudicial impact on it.
Whilst it is possible to calculate profits
lost over a specific period, it is often difficult to assess
when to terminate the loss of profit calculation where there
is no obvious termination date or where business profits have
failed to return to normal.
In summary, experience of valuations of businesses
is essential in assessing quantum. In most circumstances,
the forensic accountant will need both practical experience
of carrying out valuations and forensic accounting skills.
For further information, please contact
us .
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