June 5 9:30
Many owners of small and medium-sized businesses evaluate their company “by eye” – focusing on revenue, cost of equipment, or offers from potential buyers. However, this approach can lead to serious financial losses. According to specialists from the National Legal Collegium Group of Companies, without a professional assessment, owners often sell a business for much less than its real value.
Problems arise especially often when the transaction takes place in a short time and the buyer insists on quickly signing documents. In such situations, entrepreneurs do not always have time to conduct a full financial and legal audit of the company, as well as assess the value of the business, taking into account all assets and risks.
An illustrative case occurred with the owner of one of the regional businesses, who was planning to sell the company and had already agreed with the buyer on a preliminary price. To confirm the cost, he contacted NYUK Group of Companies.
During the audit, experts identified several problems:
- part of the profit was not taken into account in the financial model;
- certain income was reflected incorrectly;
- the company's assets turned out to be disorganized;
- rights to part of the property were not taken into account in the structure of the transaction;
- the business valuation itself was previously carried out without professional methods;
- the company's intangible assets were not taken into account.
At the same time, the buyer hurried the owner to conclude the deal.
Specialists from the National Legal Collegium Group of Companies conducted a full assessment of the business, reassembled the financial model and combined assets into a single structure. As a result, the company's value was almost doubled, and the client himself received additional arguments for negotiations.
“Without a professional valuation, a business is often sold at the price of its assets rather than its real value. Owners lose money simply because they don’t see the full picture,” said Alexander Parkhomenko, Deputy General Director of NYUK Group.
The specialist emphasized that before selling, it is important to conduct a comprehensive audit of the business: check financial indicators, asset structure, legal risks and correctness of property registration. Such an economic assessment of a business allows not only to objectively determine the value of the company, but also to increase confidence on the part of potential buyers.
This is exactly the kind of work that is carried out by experts from the National Legal Collegium. The company helps entrepreneurs evaluate their business, prepare for a transaction, and minimize financial and legal risks.
You can learn more about the services of NYUK Group on the website, by phone 8 (800) 550-13-02 and on Telegram (@Ndz2014). Contact experts on business valuation issues: 8 (800) 550-23-09.
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