GuideFundamentals
Why turnover alone does not tell you what a business is worth
Two hypothetical businesses with the same revenue and very different values, and when a revenue-based approach is used in a valuation and where it falls short.
Valuo Insights
66 publications, newest first. Browse a topic for a shorter list.
GuideFundamentals
Two hypothetical businesses with the same revenue and very different values, and when a revenue-based approach is used in a valuation and where it falls short.
Industry guideResearch and evidence
A marketing, creative or digital agency is worth the profit it can keep making without you. Retainers, client spread and key staff all move the value.
Industry guideResearch and evidence
Your café is worth the profit it can keep making for a new owner, adjusted for risk. Lease, rent, staff and your own hours all move the figure.
Industry guideResearch and evidence
A long day care centre is worth the profit it can keep making. Occupancy, staff costs, the lease, the quality rating and local competition all move it.
Industry guideResearch and evidence
What your cleaning business is worth depends on its contracts, customer spread, staff and how much of the work still relies on you.
Industry guideResearch and evidence
A franchise is worth the profit your unit can keep making, adjusted for risk. Agreement term, fees, the lease and franchisor consent all move it.
Industry guideResearch and evidence
An IT services or managed services business is worth the profit it can keep making. Recurring contracts, client spread and key engineers move the value.
Industry guideResearch and evidence
What your mechanic or auto repair workshop is worth depends on profit that lasts without you, your lease, mechanics, equipment and repeat customers.
Industry guideResearch and evidence
Your online store is worth the profit it can keep making for a new owner, adjusted for risk. Repeat buyers, ad spend, platforms and stock move the figure.
Industry guideResearch and evidence
Your restaurant is worth the profit it can keep making for a new owner, adjusted for risk. Lease, chef, liquor licence and delivery apps all play a part.
Industry guideResearch and evidence
Your shop is worth the profit it can keep making for a new owner, adjusted for risk. Lease, location, stock and supplier terms often move the figure most.
Industry guideResearch and evidence
What your hair, beauty or nail salon is worth depends on profit that stays when you step back, your lease, your team and your client book.