Business assets valuations look to the future

Author: John Rugman, James Kirk (

Categories: Business Growth, Business risk, Business Strategy
Tags: valuations
Business assets valuations are needed for commercial and tax purposes. It is a complex process. In this TV show John Rugman explains the art & science of valuations.

Business assets valuations are an art

Valuations need to be done well because the value of any business or asset is really dependent on the future performance of that business. So it’s less about the past and more about the future and that’s quite judgemental, it’s not a matter of fact, it’s a matter of opinion and analysis. So valuations are as much an art as they are a science and it’s important to get that judgement right. To do a proper valuation we really need to understand about the prospects for a business, so we really need to understand what the prognosis is, what the future performance of that business might be and the sorts of risks that might affect that performance. All valuations are very different, doing a valuation for tax purposes is a very different exercise to doing a valuation for commercial purposes. We use a variety of different approaches and techniques to make sure that any conclusion we reach is one which we’re comfortable with. Keep browsing videos on Inside Finance TV for more expert insight into business assets valuations, risks to the assets, and legislations that must be followed.
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