Valuation of Company

There are times when a business owner decides that it is time to sell their business or an investor come to you with an offer to acquire the company. This is when it is essential to estimate the value of your business so that you will have a clear understanding of how much is your business worth.

There are many factors that can influence the value of a business. Some of the more important ones are as follows:

  • Past and future profits and cash flows
  • Current and future prospects of the industry
  • Barriers to entry and state of competition in the industry
  • Ownership of trademarks, patents, fixed assets, stocks
  • Number of customers/ clients and the no of turnover days of accounts receivables
  • Outstanding loans to banks and suppliers
  • Income tax and another corporate compliance record

However, how much value you can derive from your business will ultimately be dependent on how much the buyer or investor is prepared to pay. They will of course also use the above factors to arrive at their offer price.

Therefore, the value of a business must be justified based on hard and supported facts so an agreement can be reached by both parties to enter into a deal.

If you need help to value your company, please contact us and we will be able to advise you on the best way forward.

For better understanding, consult a business consultant.


More Posts

ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

Get in Touch​