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At Buckley Scriven Oregan we believe that knowing the true value of what you own is the foundation of every good financial decision. For many business owners, the business itself is their most valuable asset, often worth more than their home. Yet when asked what it is actually worth, most can only offer a rough guess. Whether you are planning to sell, bring in a partner, pass the business on or simply want to understand your position, it pays to know what drives value and how a buyer will see it.

Why Knowing Your Value Matters

A business valuation is not only for owners preparing to sell. It can be useful when raising finance, agreeing terms with a new shareholder, planning succession within the family or deciding how much you need to put aside for retirement. Understanding your value well in advance also gives you time to improve it, rather than discovering weaknesses when a buyer is already at the table.

Profit Is the Starting Point

Most small and medium-sized businesses are valued primarily on their earnings. A common approach is to take a figure for sustainable annual profit and apply a multiple that reflects the risk and prospects of the business. The more confidence a buyer has in future profits, the higher the multiple they are likely to pay.

Reported profit is rarely used exactly as it appears in the accounts. Adjustments are usually made to reflect the true earning power of the business, for example adding back one-off costs or adjusting the owner’s salary to a market rate. This process, often called normalising, can change the picture significantly, which is why it is worth working through it with your accountant before anyone else does.

Consistency and Quality of Earnings

Buyers pay more for profits they can rely on. A business with steady results over several years will generally be valued more highly than one with a single strong year following a run of weaker ones. Recurring income, such as contracts, subscriptions or long-standing customer relationships, adds further value because it makes future revenue more predictable.

Concentration and Dependency Risks

Two risks consistently reduce value. The first is reliance on a small number of customers. If one client accounts for a large share of turnover, a buyer will worry about what happens if that client leaves. The second is reliance on the owner. If the business depends on you for sales, key relationships or day-to-day decisions, a buyer may question whether it will perform as well once you step away. Building a capable team and documented processes can make a real difference here.

The Strength of Your Financial Records

Clear, accurate and up-to-date accounts give buyers confidence and make due diligence far smoother. Regular management accounts, reliable forecasts and well-organised records suggest a business that is well run. Gaps, inconsistencies or delays tend to create doubt, and doubt usually leads to lower offers or tougher terms.

Assets, Debt and Working Capital

While earnings drive most valuations, the balance sheet matters too. Debts are typically deducted from the value a buyer will pay, and they will expect the business to be handed over with a normal level of working capital, meaning enough stock, debtors and cash to keep trading. Equipment, vehicles and intellectual property such as a strong brand or customer database can all add to the overall picture.

Where Property Fits In

Property often plays a significant role. If your business owns its premises, the building is usually valued separately from the trading business, since its worth depends on the property market rather than on profits. Some owners choose to sell both together, while others retain the property and lease it to the buyer, creating a rental income for retirement. Each approach has different tax and financial consequences, so it is worth exploring the options early.

If your business operates from rented premises, the terms of the lease can affect value too. A secure lease at a fair rent with a reasonable remaining term reassures buyers, while a short or uncertain lease can be a concern. In either case, an independent property valuation provides a clear and credible figure to support negotiations.

Building Value Over Time

The most valuable businesses are rarely built in the months before a sale. Improving profitability, broadening your customer base, reducing reliance on yourself and keeping your records in good order are steps best taken over several years. Starting the conversation early with your accountant, and with a property professional if premises are involved, gives you the best chance of achieving the value your hard work deserves.

If you would like to discuss buying or selling a property, contact us on or email peter@bsor.ie or visit bsor.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.