The sale of company shares (if it is a registered limited liability company). The sale of the business as a going concern including all of its assets. Inventory (finished goods, work in progress, raw material) Furniture, fixtures and equipment Real Estate (land, buildings, leases) Intangible assets -- e.g. Trademarks, trade names, patents, copyrights Goodwill Establishing a Net Operating Surplus We require at least two (preferably 3) years full financial accounts, plus the current year’s trading using Profit & Loss management accounts and a forecast budget for the next financial year. Breaking down the sale price: A business can effectively be sold by two methods: 99% of business buyers prefer to purchase the business and its assets as a going concern. The sale price will comprise the breakdown of all asset categories that may include: Financial Analysis When valuing small to medium businesses, the most popular earning base tends to be EBPITD (Earnings before Proprietors income, Interest ad Tax and Depreciation). The purpose of using EBPITD is that it separates financing and tax issues from business issues and makes an allowance for either a working owner or a manager. The Valuing Process McDonald Real Estate uses, appraises businesses using the following four steps. 1. VALUING A BUSINESS eieio.co.nz
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