What is my Service Station worth?

Knowing what a business is worth is necessary when you are:

  • buying a business
  • selling a business
  • getting a business loan
  • attracting investors
  • valuing your own net worth
  • In a Shareholder and Partnership Buyout or Dispute
  • Part of a Marital Dissolution

So what is the best way to value my service station?

Valuing a service station can be done in different ways – some more complex than others – and each method has its advantages and disadvantages. In most cases, valuations are based on a combination of methods.

Below is an overview of a business valuation and the most common methods of valuation.

Valuation Methods

The business valuer will need to consider which method of valuing a particular business is the most appropriate. Not all methodologies are suitable for every type of business. The most commonly used methodologies are:

  • Net Present Value (NPV) of future cash flows or Discounted Cash Flow method (DCF).
  • Capitalisation E.B.I.T. Based on estimated Future Maintainable Net profits / Expected future profits principle.
  • Multiple of P.E.B.I.T. Based on the purchase of past profits – Future Probability principle.
  • Capitalisation of estimated maintainable Super Profits – Excess earnings.
  • Market-based methodology (sales of comparable competitor businesses).

The ABBA Group offers valuation services that provide a more complete picture of a business’s value – information that will be indispensable during negotiations to purchase a business.

For further information and to discuss your need with ABBA Group please call Anthony on 0468 488 111

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