Discounted Cash Flow (DCF)
Future cash flows are forecast and discounted to present value using a rate that reflects the time value of money and the risk associated with the business.
Business Valuations • South Africa
Know what your business is really worth.
Gloworth Consulting provides professional business valuation services for business owners, buyers, investors and shareholders who need a defensible assessment of business value for transactions, planning and strategic decision-making.
DCF Valuations
Forward-looking cash-flow based valuation
Multiple Approaches
Method selected according to the business and purpose
Professional Reports
Clear valuation conclusions and supporting analysis
Established 2013
More than a decade serving South African businesses
Valuation Methodology
How we determine what a business is worth.
Business valuation is not simply applying a percentage or multiple to revenue. We assess the business, its financial performance, future cash-generating potential, assets, risks and the purpose of the valuation before selecting the appropriate methodology.
Market Multiple Approach
Where suitable market information is available, valuation multiples can be used to benchmark the business against comparable companies or transactions.
Asset-Based Approach
The value of the underlying assets and liabilities may provide an appropriate valuation basis, particularly for asset-intensive businesses.
Financial Performance Analysis
Historical revenue, profitability, margins, cash generation and financial position are analysed to understand the underlying economics of the business.
Risk & Assumption Assessment
Key assumptions, business risks, growth expectations, customer concentration and other factors affecting value are considered as part of the analysis.
Valuation Report
The engagement concludes with a professional report setting out the valuation approach, key assumptions, analysis and concluded value or valuation range.
When do you need a business valuation?
Important decisions need a defensible view of value.
A professional valuation can help owners, buyers, shareholders and investors make better-informed decisions when the value of a business matters.
Sale of a Business
Understand a reasonable value or valuation range before
entering negotiations with potential buyers.
Business Acquisition
Assess the value of a business you are considering buying
and test whether the proposed purchase price is reasonable.
Shareholder Transactions
Support discussions involving the purchase, sale or transfer
of shares or ownership interests.
Succession & Exit Planning
Understand business value when planning an owner's exit,
succession or transfer of the business.
Investment & Strategic Planning
Establish a clearer view of business value when considering
investment, restructuring, growth or other strategic decisions.
Our Valuation Process
From financial information to a defensible valuation.
Every valuation engagement starts with understanding the business, the purpose of the valuation and the financial information available.
1. Define the Valuation Purpose
We establish why the valuation is required, the relevant valuation date and the intended use of the valuation report.
2. Information Review
We review historical financial statements, management accounts, forecasts and other relevant financial and operational information.
3. Business & Financial Analysis
We analyse historical performance, profitability, cash generation, financial position, growth prospects and material business risks.
4. Select the Valuation Methodology
We determine the valuation approach appropriate to the business, available information and purpose of the engagement.
5. Valuation & Sensitivity Analysis
The valuation is calculated and key assumptions are assessed to understand their effect on the concluded value or valuation range.
6. Valuation Report
We prepare a professional report explaining the methodology, assumptions, analysis and concluded business value or valuation range.
Preparing for a valuation
What information will we need?
The information required depends on the business and valuation methodology, but typically includes recent annual financial statements, management accounts, forecasts or budgets, details of assets and liabilities, ownership information and relevant information about the business and its operations.
Frequently asked questions
Business valuation questions.
How much does a business valuation cost?
Valuation fees depend on the size and complexity of the business, the purpose of the valuation, the quality of the financial information available and the valuation methodology required. We assess the scope before providing a quotation.
What information do you need to value my business?
We typically require recent annual financial statements, management accounts where available, forecasts or budgets, details of assets and liabilities, ownership information and relevant information about the business and its operations.
Which valuation methods do you use?
Depending on the business and purpose of the engagement, valuation approaches may include Discounted Cash Flow, market-based valuation multiples and asset-based methods. The appropriate methodology is determined after reviewing the business and available information.
Can you value a business before it is sold?
Yes. A valuation can help a business owner understand a reasonable value or valuation range before entering sale negotiations with prospective buyers.
How long does a business valuation take?
Timing depends on the complexity of the business, the valuation methodology and how quickly the required financial and operational information can be provided. We confirm the expected turnaround after reviewing the engagement.
Ready to understand your business value?
Get a professional business valuation.
Tell us about your business and why you need the valuation. We'll assess the available financial information, confirm the scope of the engagement and recommend the appropriate next step.