Whether you want to pass on your business to family, sell to a third party or wind it up, there will be a time when you need to put a value on your business.

Certainly, if you are looking to sell, any potential purchasers will want to be clear about underlying profitability trends and to have access to up to date management accounts and forecasts for the next 12 months and beyond.

It is possible to make an educated guess on the range of values for your business. However, a professional valuation put you on more solid ground and a good accountant can help you do that.

The key questions which will be asked and therefore which you need to have the answers to include:

1. How are sales performing; flat, keeping track of inflation or exceeding it?
2. What portion of your company’s value is tied up in stock and equipment?
3. To what extent does your business depend on other industries?
4. How reliant is your business on the economy in general?
5. What are the forecasts for your sector as a whole?
6. Are your company’s products and services diversified?
7. How up to date is your company’s technology?
8. Do you have a research and development programme in place?
9. How competitive is the market you operate in?
10. Does your company have to contend with extensive regulation?
11. Are your competitors doing things you should or could be doing better?
12. How loyal, and effective, are your staff?
13. Have you carried out an audit of overheads to ensure costs are reduced as far as possible?
14. Are there formalised contracts in place with suppliers and customers?