Singapore Expats Forum

Value of the company

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.

Sponsored by:
Citibank International Wealth Management

Posts: 9
Joined: Wed, 09 Nov 2011

Value of the company

Postby biztreesg » Fri, 25 Nov 2011 11:36 pm

Dear guys,

How can we justify the company value ? ( is that worth to buy )


Walking At Nights
Posts: 2
Joined: Mon, 28 Nov 2011

Open Ended Question

Postby Walking At Nights » Tue, 29 Nov 2011 12:13 am

Just my thoughts, there are 3 possible ways:

1. Market based price. This is a price determined for your target business based on the prices of similar businesses, of the same product or services, size, balance sheet, and location, sold in the immediate past, say in the last 1 year.

2. Profitability. This is based on the discounting of the future cash flow projections you believe you can achieve from the target business, taking into account planned changes and expenditure, market competition and demand, etc.

3. Net Realisable Value. This is based on the net asset of the business at year, i.e. the assets of the business minus all their liabilities at year-end. However, remember that you may need to adjust the balance sheet, prior to determining the net asset of the business, to account for commitments not capitalized as a liability in the balance sheet and assets that are no longer recoverable, such trade receivables not collectible or equipments not longer useable.

User avatar
Mad Scientist
Posts: 3459
Joined: Thu, 03 Dec 2009
Location: TIMBUKTU

Postby Mad Scientist » Tue, 29 Nov 2011 3:01 am

You forgot a few more

1. If it is a profitable company, look at the full set of account, stock, debt, credit etc..

2. If it is yes, how much goodwill do you need to fork out?

3. If it is a going concern, then the tides is shifted against them
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

User avatar
Posts: 1853
Joined: Thu, 24 Nov 2011
Location: The Mainland....

Postby nutnut » Fri, 13 Jan 2012 4:01 pm

More robot posting.... Can we get Captcha on the registration? Or do we already have one?

Posts: 29
Joined: Tue, 14 Jun 2011
Location: Singapore

Postby AnthonyC » Sun, 05 Feb 2012 11:33 am

I think another major adjustment that has to be done on the books before a valuation can be given is removing personal expenses that were claimed as company expenses in different periods. This will give you a better estimation of the company's true expenses it incurs in order to fulfill its work.

Also, many entrepreneurs tend to 'under' pay themselves in the business, and play a crucial role in delivering value to customers. So replacing them may cost more. In fact i've seen times when they have had to be replaced by several persons.

  • Similar Topics
    Last post

Return to “Business in Singapore”

Who is online

Users browsing this forum: No registered users and 2 guests