The Challenge in valuing SMME’s

Theoretically, the Business Valuation process for an SMME is the same as for any other bigger entity. Whilst that is the case, there are undoubtedly certain recurring challenges that are encountered with business valuations in the SMME space.

These commonly include:

Ø lack of proper accounting records

Ø lack of proper supporting documentation

Ø personal expenditure included in the Profit and Loss Statement

Ø related party transactions, not at arm’s length

Ø management salaries not aligned to the market

Ø lack of proper business forecasts

This makes valuing these businesses difficult and time consuming.

We have many years’ experience in professional practice working with SMME’s, as well as valuing them. As such we are well positioned to deal with these specific challenges, and to get to the point of a fair valuation as soon as possible, within an appropriate fee.

Valuations will be done in terms of APES225 by a Registered Business Valuation Specialist (CA ANZ).

Visit our website for more information.

Liza Vogt

liza@bizpro.global

www.bizpro.global

0426178106