Business Valuations encompass a range of methodologies, each tailored to suit specific business contexts. The most common methods include applying a Capitalisation Rate to EBIT (Earnings before Income and Tax), EBITDA (Earnings before Income, Tax, and Depreciation), PEBIT (Proprietor’s Earnings before Income Tax), and Super Profits (EBIT adjusted for considerations of Funds Employed in Plant & Equipment, Stock, and Working Capital). At Acumentis, our experienced team determine the most fitting methodologies for diverse business types.
In addition to these, Industry-Based Methods and Discounted Cash Flows are alternative approaches employed in certain scenarios. The chosen method is clearly outlined in the valuation report, selected based on the industry nuances, the purpose of the valuation, and the available information. This ensures a thorough and tailored valuation approach for every business we assess.