The IASC acknowledges over 90 methods of valuation of a business. However, common sense remains: a SME is worth the value which it can generate in a reasonable period of time, currently between 4 and 7 years. You know best your business, so you are THE most qualified to value it well providing that you have the right tool.

• The focus of the buyer is the value that the business can generate for him in the future, not in the past;

• Thefore valuating without budgeting is nonsense.

Your tool must match these basic principles.