Valuing Your Business – Free & No Obligation

• We gather information to understand the dynamics of your business
• We view your business from the perspective of the buyer
• Value is not constrained by financial calculations
• The motivation of the buyer is always key

The first step is for Churchfield to gather information and undertake a financial valuation of your business based upon the information available about its performance to date and its future prospects. This will produce a range of values that form the baseline valuation. For traditional business sales processes this would then be used as the basis for the asking price.

However, experience has shown that a business can attract a wide range of offers. This is for the same business, at the same moment in time, based upon the same information provided to all bidders – which is is why we never mention price in any marketing material.

Why do these bids vary so significantly? It is because the value of a business to the potential purchaser is not purely driven by a financial calculation, but is driven by the degree of strategic fit to their existing business or future strategic direction. This means that the motivation for the purchase is a key element in determining the price offered.

The Churchfield methodology is to appraise your business from the viewpoint of the prospective buyer who wants to realise the full potential of your business under their management and direction. This enables the seller to:

• Demonstrate to the prospective purchasers the underlying potential of the business which may not be factored into their offer price, thus improving the valuation.
• Demonstrate to the potential purchasers those areas of the cost base that are candidates for longer term reduction, thereby showing that the underlying potential of the business is greater.
• Provide the facts to support the final negotiations about the offer price and conclude contractual negotiations, thus improving leverage.

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