It is often said that “a business is worth as much as someone is prepared to pay for it”.

But do you know how much a Buyer might pay for your business? Well, it all depends….!

Any offer for a business for sale will depend not only on the perceived Value to the Buyer but will depend on the amount the Buyer is willing to finance – whether it’s from their own funds and how much they can borrow (or leverage) against the assets of the business. Assets usually include anything with a make, model and serial number and a date of manufacture and how much they can borrow against money owed to the Company, such as debt due from invoicing.

Unfortunately, it doesn’t just end there, as the Value to a Buyer (and to their Lenders) will largely be determined by the financial performance of the business, as shown on the Statutory Accounts, Management Accounts and Forecasts.

Ideally, businesses being sold will need to demonstrate true profitability in order to maximise value and therefore, the last set of Statutory Accounts should be presented in such a way to show that the business is at the very least still “solvent” and not loss making, just to save on tax. The payment or amount of Dividends needs to be carefully thought through when finalising accounts in the year of selling, as will any adjustments to the stock value.

If you are thinking of selling, our Finance Specialist will provide a FREE confidential assessment from your latest set of Statutory Accounts and Management Accounts, to evaluate how much your business might be worth to a Buyer from a lending perspective.

So, can you afford to sell? Find out by simply completing the form below: