How Business Valuation Turns out to be Profitable for SMEs?
29

Nov 2019

Small and Medium enterprises stand as the backbone of a nation. In the United Arab Emirates (UAE), the SMEs constitute 95% of the total enterprise population, which employs around 43% of the entire workforce. From a holistic point of view, we can say that the SMEs stand as a primary source of entrepreneurship, innovation and employment creation. In the last few years, there has been a continuous rise in the establishment of SMEs in the UAE region. Now, it becomes way essential for these business entities to understand their market value.

If you are planning to start a business in UAE, or you stand as an owner of an SME, then the guide is for you. In this treatise, you will get a clear idea as to how implementing the business valuation service will turn out to be profitable for your business.

1.Understand Your Business Worth

Once you conduct the business valuation process, you will have a clear idea regarding the market value it holds. Now, being a business owner, it is vital that you should know your business value. Being aware of it will help you to enhance the company’s goodwill to the next level. Additionally, you can also take the necessary steps forward to leverage the business value that your company holds and acts as an eye-opener.

2.Highlights the Growth Opportunities

Business valuation acts as a boon for SMEs because they pave out multiple growth opportunities. By having a look at your accounting and bookkeeping records, the financial stability and market value of your company can be known easily. Once you gather the required information, you will be in a better position to pick position to plan for your business and expand it accordingly.

3.Widens the Scope of Merger and Acquisition

In the next level, the implementation of the business valuation process also highlights the scope for mergers and acquisitions that you can look for. Say, if you want to sell your company, you will be in a better position to quote a better price for your company. On the flip side, the company who is planning to go ahead for mergers and acquisition with you will also have a close look at your business books. This stands as one of the reasons why your accounting books are expected to manage professionally. The better value your company holds, the better options lie ahead when it comes to mergers and acquisitions.

4.Merger and Acquisition

It is a well-known fact that business planning is essential at every step of the business cycle. Without proper planning, you can’t carry out the business operations effectively.  When it comes to a SMEs planning efficiently matters most. However, it is essential to understand that business planning needs to be done on some concrete base. Drafting a plan without proper knowledge on the financial front would turn out to be troublesome at the end. Now, the moment you implement the business valuation process and gets to know the economic scenario of your company, you can draft a business plan accordingly.

In a nutshell, we can say that business valuation acts as a boon for the SMEs as they depict a clear picture regarding the business stability. Now, at this point, you need to take care that the implementation process gets carried smoothly. The best and smart option that most of the business owners prefer is to have a word with accounting and audit experts who can guide you at every step. JAXA Chartered Accountants, a DAFZA approved auditor stands as one of the best accounting and auditing expert in UAE. Our accounting and audit experts take utmost care in implementing the business valuation process and have served multiple clients across the UAE. They take charge of understanding your business needs and provide customized solutions accordingly. If you want to have a word with our experts, do contact us today-we’d be glad to assist.