Definition : Goodwill

A business is defined by all the tangible elements (equipment) and intangible elements (clientele, brand, etc.) that make up the business.

How to value a business ?

A business valuation is based not only on financial elements, but also on those specific to its activity, which influence the valuation: location, competition, team...

In terms of financial elements, it is necessary to provide the last 3 balance sheets of the business. 

The valuation methods used in combination will then be adapted to each specificity: profitability, patrimonial, DCF, comparative.

Why value a business ?

There are several reasons for valuing business assets: 

- preparation of a succession

- the purchase / sale of the business

- financing a bank loan 

- the estimation of the assets

- monitoring of value creation 

The strength of a XVAL valuation is the delivery of a detailed and documented report within 3 days, justifying the methods and assumptions used (EBITDA restatement, coefficient...) which will be the basis for discussions with the buyer, the banker.

You wish to have your business evaluated, do not hesitate to contact one of our experts: contact a XVAL consultant.