Cutting Through The Hype: Using Forensic Accounting For Fair Business Valuations

Cutting Through The Hype: Using Forensic Accounting For Fair Business ValuationsBusiness valuations: they are figures that should be based on complex analysis but are often plucked out of the air by the owner of a company who has an inflated, idealised sense of what their business is worth.

If you’ve ever watched Dragons’ Den then you’ve probably had a head-scratching moment when a hopeful entrepreneur asks for £100,000 in return for 10 per cent of the business; you asked yourself, ‘how on earth are they valuing a business that is little more than a prototype of a product at £1 million?’

Though it is never advisable to use TV series as a window into the business world – The Apprentice is evidence enough of that – this particular example is illustrative of a real problem. It highlights the common tendency for business owners to overvalue their businesses, which is understandable.

Unsurprisingly, therefore, there is a need for outside help. That is why the forensic accountants at Frenkels Forensics are regularly called upon to cut through the hype and get down to the cold hard numbers. Whether someone is bringing a business partner on board, selling part or all of their business or the business is changing hands as part of divorce proceedingsbusiness valuation services are essential.

Stock, assets, existing and future orders, contracts, debts, cashflow – there are a multitude of factors that must be carefully examined to arrive at a fair valuation of a business. With years of experience in doing just this, the experts at Frenkels Forensics are able to skilfully separate fact from fiction in order to demonstrate just what a business is really worth for a buyer or a seller.

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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