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.
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