Why Are Business Valuations So Important In Helping Financial Deals To Progress?

Why Are Business Valuations So Important In Helping Financial Deals To Progress?If ever any evidence was needed into just how difficult financial negotiations can be, one need only look at the ongoing Greek Euro crisis.

Now, obviously this is a particularly complicated case, but it shares a common characteristic with financial negotiations and that is a disagreement between the two sides over what a ‘fair’ price or settlement would be. Naturally with any kind of business deal, the buyer wants to pay as little as possible for something, while the seller wants to achieve the highest price possible.

This is particularly common when an individual is attempting to sell all or part of a business. And when negotiations break down, forensic accounting services can help matters progress by conducting a business valuation, which Frenkels Forensics is highly experienced in.

Whether it is a divorcing couple that own a share of a business, a person who wants to sell their stake in a company or a business owner looking for a buyer, a fair and accurate business valuation will not only ensure the seller achieves a good price for their business, or stake therein, but it will also prevent negotiations reaching loggerhead.

By taking a comprehensive view of a business, its stock, assets, IP, staff, customer base, order book and of course turnover Frenkels Forensics’ accounting experts can produce a report that does not simply say how much a business is worth, but proves how much a business is worth.

As Greece’s rejection of various bailout agreements illustrates, when people do not feel the figures add up, they are not going to agree terms. And while there are a wide range of political factors to be taken into consideration in this instance, the point still rings true: adding science and quantitative evidence to the process of arriving at a financial figure will make progress far more likely, particularly with business deals.

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 www.frenkels.com

By Vitek Frenkel – find me via Google+

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