How long does a business valuation take?
Whether it’s part of a regular audit or a major change in your business, valuation is an important process that’s essential to get right.
Without an accurate valuation of your business, you’ll have very little to go on when it comes to selling your business or reassuring shareholders. And if you need a valuation to meet regulatory standards, any errors or inaccuracies could lead to more trouble than they’re worth.
Conducting a valuation properly takes time. That said, it shouldn’t drag on for an extended period, either, or become a drain on your resources.
The time taken by a business valuation depends on various factors. If things go smoothly and the process is straightforward, it might take about three to four weeks. But for more complex situations, the process can take months.
Factors affecting your business valuation
Before the valuation begins, you’ll need the right documents to hand – your tax returns, accounts, forecasts, reports and so on. The more records you have readily available, and the more accurate they are, the easier it is for us to complete your valuation.
Of course, this is made easier if you’re already a client with us, as we’ll have the appropriate documentation to hand.
We may also need to ask you and your management team some questions throughout the process. The more accessible you are and the sooner you get back to us, the swifter the process should go. If there are a lot of people involved in your business who all need to be contacted separately, it’s possible this could add some time to the valuation process.
Similarly, the size and complexity of your business can affect the time the valuation takes. A small business with a couple of members of staff is naturally going to take less time to value than a complex multinational with various branches, properties and assets around the world.
Finally, you’ll need to allow time for any adjustments. If there are any inconsistencies in your financial statements, these will need to be investigated and aligned.
This is another reason to make sure the records you’re keeping at any stage in your business are accurate and up-to-date – and to work with an accountant who’ll keep all this information in order for you.
Make your valuation stress-free
We know that a business valuation is often needed during a stressful and busy time. The last thing you need is any additional pressure caused by the valuation itself.
That’s why we make our valuation service as timely and painless as possible, communicating with you at every step of the way so you’re clear on the expected timeline.
Get in touch to find out more.