CBC can assist in the strategic overview process. A Valuation takes into account many factors such as past trading record, future growth prospects of the company and the sector, and the general economic outlook. Often the valuation will vary according to the profile of the purchaser. Trade buyers will normally pay more if cost savings are available, but the ultimate value is dictated by market demand. Application of multiples to pre and post tax profits will vary from sector to sector and are arrived at through past experience of completed transactions and market awareness.
Net worth is also a significant factor.
At an early stage in the process it is vitally important that agreement is reached between the seller and advisors on the valuation range. A This will depend on the individual sale strategy. Normally it is advisable not to disclose the seller's price expectation prematurely, but to seek non binding indicative offers in order to select a limited number of preferred buyers with whom to enter the final stages of negotiation. A This will vary according to the profile of the seller. Normally assignments would not be taken on by CBC for companies with an annual turnover of less than 500,000.