Small Business Value
Small business value is a controversial subject. There is a portion of the academic valuation population who believe there is a big difference between price and value. That is, the price a business may sell for is not necessarily its true value. They argue the value should be determined by proven academic theory and calculation, not on what price similar businesses to the one being placed on the market have been sold for.
Others ague that the price fetched is a "real" value" and that the market knows best!
The courts are flexible on this matter, but certainly it is hard to argue against comparable sales evidence of similar sized, similar location businesses which have recently sold in a similar economic environment being relevant to the value one might place on a business about to go on the market.
If you are in a family court dispute you may need a business valuer to prepare a business valuation report and the small business value he will apply will take into account all the above mentioned issues relating to small business value. The business valuer network is a network of 17 business valuers arround Australia who are constantly involved in small business value calculations and who regularly share sales data so their clients receive the most professional advice possible on small business value trends.
Need a determination of small business value for your client? contact firstname.lastname@example.org.