Business Valuation in Kenya

Business Valuation in Kenya – Do you know what your business is worth?

When you started your business, its value was probably negligible. Unless you purchased or inherited your company, it was not worth much when you opened your doors, Overtime, the Value of your business must have gone up.

We believe that every business owner should have an up-to-date business valuation report to help them in the decision making process in their Business

Our valuations combine in-depth knowledge of recent market transactions together with your financial results and identified business strengths to provide you with a professional confident business valuation.

Business Valuation in Kenya: two things mostly determine The Value of your business: what the business owns and what it earns.

What the Business Owns: this includes tangible and intangible assets. The tangible assets are the furniture, fixtures, equipment, inventory, and real estate the business owns. The intangible assets can include the business trade name, contracts with customers, relationships with vendors and suppliers, client lists, employees, leases, licenses, policies and procedures, recipes, trademarks and patents.

What a Business Earns: This is an important component of your business valuation in Kenya because it will form the basis of projecting how much your business would earn in future. Potential buyers are usually very keen on this because they are in essence buying into your future profits. Personal benefits to the business owner like salary (Assuming the business owner is earning more than the industry average), health insurance, company car and any other extra ordinary expenses in a particular year are added back in order to get a proper estimate of what the business earns for valuation purposes

Here are some of the reasons you might need a Business Valuation in Kenya:

• Raising investment capital
• Selling part or all of your company
• Management or a partner buy-out
• Merger or sale to another entity
• New shareholder or partner coming on board
• Establishment or annual update of an employee stock ownership plan (ESOP)
• Formulating a business strategy
• Involved in a legal or matrimonial dispute
• Taxation planning