Business Valuations: How Do You Agree A Fair Price?

Business Valuations: How Do You Agree A Fair PriceDetermining exactly how much something is worth can be a tricky business. Often, the amount something is worth simply equates to the amount someone is willing to pay for it.

However, such vague means of establishing value do not hold much water in the business world. Indeed, when it comes to business valuations more precise and scientific methods need to be applied and this is why forensic accounting has such a prominent role to play in this task.

Whether it is to settle shareholder disputes, divorce investigations or business sale negotiations, both sides first and foremost will need to fundamentally agree on what the business is worth. This is where the challenge of placing a price tag on a company raises its head, typically with one side believing it is worth more than the other.

Using technical, forensic and analytical skills, experts at Frenkels Forensics can enter the fray and bring matters to a fair and agreeable conclusion. By examining all the details, from assets and financial records to order books and outstanding debts, the forensic accountants can assess exactly what represents a fair price for a company. By then presenting this in a clear report, both sides can see the objective facts laid out in front of them.

As a general rule of thumb, when opinion and sentiment is taken out of the equation, it tends to become far easier for debates to be resolved. With business valuations being such an integral part of so many professional and private cases, having experienced experts on hand to determine the value can be the difference between a smooth, painless settlement process and ongoing, stagnant disputes.

For expert help with a business valuation contact Frenkels Forensics for an independent appraisal.

Alternatively, if you’re looking for advice in any aspect of forensic accountancy, then do get in touch via Twitter, Google+, LinkedIn or by visiting our website

By Vitek Frenkel – find me via Google+.

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