What is your company worth?
What is your company worth?Keywords:Company performance, Asset valuation
If you were buying a car, a house or any other product, you could refer to a pricing guide to show its current value. But if you wanted to buy a company you would be hard pressed to find a definitive guide to what companies are worth.
Filling this obvious void in the acquisition market, Plimsoll has produced a Pricing Guide ta the Business Centres Industry, a publication that puts individual company values to the Top 304 companies in the UK business centres industry.
Analysing current and future worth, Plimsoll has named the ten most valuable companies in the industry.
Four of these companies suffered a decline in their value last year yet remained in the top ten. Biggest improvement in the top ten is Knightsbridge Business Centre (Gloucester) Ltd, a company that saw a whopping 135 per cent improvement in value.
To get a pricing guide on a sample company in the business centres industry or to find out more information on the guide, call +44 (0)1642 257800.
Top ten most valuable companies in the business centres industry:
- 1.
City Industrial Ltd;
- 2.
Westmead Business Group Ltd;
- 3.
Pentagon Business Centres Ltd;
- 4.
Camden Lock Business Centre Ltd;
- 5.
Prontaprint Ltd;
- 6.
Bourne End Business Centre Ltd;
- 7.
Gainsborough Business Centres Ltd;
- 8.
Pikecourt Ltd;
- 9.
Knightsbridge Business Centre (Gloucester) Ltd; and
- 10.
Boon & Sons (Holdings) Ltd.
More research
The Pricing Guide to the Business Centres Industry was created for people interested in buying or selling their company. Supported by a company's own full audited accounts every company in the industry is analysed and presented with a current and future worth. For many companies, this pricing guide represents an excellent starting point for negotiations.
Combining the analyses of all 304 companies in the industry, Plimsoll found some interesting measures of company performance versus worth over the last two years.
Average pricing in the industry
On average, prices in the Business Centres industry increased by 48.6 per cent last year to £2,371,000. This compares to last year when prices increased by 9.7 per cent. Company valuations saw considerable variation as 36 per cent saw their value decline and 64 per cent saw their value increase (Table I).
Company size not a factor
Companies with sales in the "less than £500,000" bracket seem to have been hit the hardest this past year in value terms. Their value fell on average by 2 per cent. Smaller companies seem to have improved the most.
The value of the company has almost nothing to do with its size. Knightsbridge Business Centre (Gloucester) Ltd with sales of £232,000 made it into the top ten, whereas Barnsley Business and Innovation Centre Ltd with sales of £1 million was valued at number 11.
Adding company value
For whose the 49 companies value increased over last year, the increase was massive adding on average 26 per cent to their value. In most cases improving in profitability and re-organising the company directly influenced this.
Finding the right time to make the offer
For the acquirer, it is perhaps companies that showed a decline in value that might be of most interest. For 27 per cent of these companies whose value declined, their average value dropped 18.3 per cent. Interestingly, Plimsoll found that seven of these companies had gross margins above the industry average. "Their fundamental business looks sound, yet costs seem to be higher than expected. Now may be the time to put in an offer," said Don Turkington, managing director of Plimsoll.
Obviously pricing a company is subjective yet this process does need a starting point. Choosing a company in the Business Centres industry is also a function of availability, as there are not many players to choose from in any price range. If you want to buy or sell your company then the contenders are here to review.
