Nairametrics| For many prospective buyers and sellers of business enterprises, the major headache they have is answering the question ‘How much is this business actually worth?’ Their answers to this question usually determines if a company is sold for an exorbitant price or if the buyer goes home shortchanged.
To cater for this dilemma, an African business exit company CompexAfrica, has announced the launch of its online Business Valuation tool for business owners and anyone who wants to have an idea of what buyers could pay for their business.
According to Guardian, the tool is a product of several months of intensive development and testing and can walk users through the valuation process in a simple, clear, concise manner. A decent estimate can be obtained after just a few minutes of using the tool.
“It’s important for business owners to have an idea about what their business could be worth while talking to a business broker or prospective buyer. The tool uses the Discounted Cash Flow (DCF) method by taking the expected future cash flows and “discounts” them back to the present day, to give a well-argued valuation. Users should ensure they use actual financial data, and they should compare value given with other valuation methods” Ifeoma Uddoh, Chief Operating Officer of CompexAfrica further told Guardian.
CompexAfrica received seed money and incubation from Sasware, the technology investment subsidiary of Signal Alliance and has also been leveraging on Signal Alliance’s over 20 years’ experience in the tech industry to deliver innovative solutions to fill the gaps in Nigeria business environment, says Guardian.