Worth.Business in the news: Business valuation part art and part science

An article about the different aspects to consider when doing a business valuation was published in Finweek on 18 February 2021. Johann de Lange, Worth.Business Director, is quoted extensively in this article and makes a valuable contribution in discussing the merits, pitfalls and tips when doing a business valuation. The original article can be downloaded

2021-02-25T10:52:24+02:0025 February 2021|

The relevance of business valuations for financial statements this year

We are fast approaching financial year-ends for many businesses. 31 December is also a popular year-end, especially for companies that are part of an international group or those that align themselves with international business markets and practices. This means many companies will be busy finalising their financial statements. This year there is a difference: Many

2021-02-22T11:17:17+02:0022 February 2021|

Worth.Business in the news: Covid-19 continues to impact business values

An article about the effect of Covid-19 on business valuations was published in Bizcommunity on 10 Feb 2021. In this article Johann de Lange, Worth.Business Director, discusses the factors to consider when doing business valuations in a Covid-19 era. The original article can be read here What type of user are

2021-02-17T13:23:58+02:0017 February 2021|

Business Valuations – Our news picks (09 Feb 2021)

We bring you carefully selected business valuation articles published recently. In this edition you can expect to read more on how hedge fund short sellers of Gamestop were targeted by an army of amateur investors organised on a Reddit forum called WallStreetBets. Experts weigh in on the likely outcome with reference to fundamental valuation analysis and

2021-02-09T14:30:21+02:009 February 2021|

The impact of fixed assets on business valuations

Fixed assets and related cash flows are a substantial part of a business valuation. If they are not adequately recognised it will result in a flawed valuation. In this article, we discuss the treatment of fixed assets in a business valuation. Many companies have a capital expenditure budget or forecast, based on their capital program

2020-11-25T09:22:19+02:0025 November 2020|

Watch out for the overheads forecast trap

Valuers often fall into the trap of merely forecasting the overheads to grow at an inflationary rate while revenue is forecast to grow at a different rate. This oversimplification can lead to understated expenses due to there being other factors that could influence the way in which costs fluctuate. In this article, we investigate how

2020-10-27T15:01:33+02:0027 October 2020|

How a change in sales mix affects a business valuation

The optimisation of a company’s sales mix plays a significant role in driving up its value, especially if there are sustainable increased sales volume and profit margins while overheads can stay relatively fixed. The sales mix of a company means what a business sells and to whom those products and services are sold. These components

2020-10-15T12:19:30+02:0015 October 2020|

Drawing from the past to build a credible valuation

Valuation formulae for different valuation methods are fairly simple, but this also means that values can be engineered to achieve a desired outcome. Any valuation outcome, however, needs to be credible to be accepted by a willing buyer and a willing seller. Assumptions on which valuation calculations are based can be subjective, so care needs

2020-10-01T11:36:23+02:001 October 2020|

Normalising earnings in a business valuation

There are several questions that come to mind when we start talking about normalising earnings in a business valuation. Questions like; what role does the normalisation of earnings play in a valuation? Why is it necessary? How should it be approached? What are the typical adjustments?  Let us delve deeper. The concept of normalised earnings

2020-09-18T00:55:13+02:0014 September 2020|