There are many factors that come together to determine the value of a business. Broadly speaking it is maintainable earnings multiplied by a return on investment factor.

This is the amount that a purchaser could reasonably expect to make from the business in future years. It is the accounting profit the business generates after adjustments for personal, non-business, extraordinary, financing (interest), non-cash (depreciation) and one-off items. It is normally an average of the last 3 years or is weighted to give most relevance to the most recent year.

Clifton’s can help with that. We understand the calculation methodology and returns to apply. Contact Us if you need or want your business valued.