As the UK’s economic recovery continues, confidence is returning to businesses in most sectors, with many now assured of their own future.
The result of this more optimistic outlook is that many companies – SMEs and enterprises alike – are looking for ways to grow, and one popular option is inorganic growth, that is to say, growth through buying other businesses. And those wishing to pursue this strategy will require, among other things, accurate business valuations.
At the end of 2014 the global value of mergers and acquisitions (M&As) hit its highest annual level since 2007, before the onset of the financial crash, according to Thomson Reuters data. This upturn in deals looks set to continue throughout 2015, with forensic accounting firms on hand to help with any such deals.
Indeed, agreeing a fair price for a company can be an extremely difficult challenge; it is often the stumbling block in many negotiations, whether that is an M&A, an individual selling his share of a company, or separating a business between different parties in the case of a split, a divorce perhaps.
There is a wide range of factors that must be taken into consideration to arrive at the right value of a business and the experts at Frenkels Forensics are experienced in analysing them all, with business valuations being a key service our firm provides.
From stock and assets through to the order books, cash-flow and potential debts – these are all things that must be assessed in the valuation process. Without skilled and experienced help it can often prove a troublesome task too, resulting in the two parties reaching loggerheads in their negotiations.
Frenkels Forensics can enter the fray, complete a full check of all relevant factors and then provide a clear report that both sides can agree represents a fair value, allowing the deal to be completed.
By Vitek Frenkel – find me via Google+.