With some buyers likely to be more cautious in the months ahead, not to mention the true valuation of some businesses being tough to calculate due to economic uncertainty, what’s the best way to get deals done and ensure a smooth business exit?
Commonly, parties agree a business valuation based on historic financial reports and future projections. However, many businesses will be facing a reduction in revenue, and the uncertainty makes it difficult to accurately forecast.
For example, a business that’s seen sales dip over the past few months may make a strong recovery and see revenue increasing even a year from now.
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