As many local businesses prepare for financial year-end, their business valuations can be used for more than the regulatory requirements spurred by COVID-19. The pandemic brought about a substantial change in the business environment, with prevailing conditions continuing into 2021. Financial learnings from this difficult period can form part of their strategy to prepare for new opportunities and challenges that the new year may bring.
“Following a turbulent year, business owners and financial decision makers can use their valuations as a means to understand the impact of the pandemic on their business and how to adapt going forward,” says Johann de Lange, Managing Director and founder of Worth.Business.
Launched in 2020, Worth.Business is an online tool that makes business valuations more accessible for companies of any size, at a fraction of the time and costs associated with traditional valuation processes.
Valuations provide business managers and financial professionals with useful information including where the risks are in their business; where the value of the business is coming from; and ways to increase that value.
International Financial Reporting Standards require an asset to be impaired if circumstances give a strong indication of a material reduction in value. The anticipated change in business values caused by COVID-19 may trigger regulatory requirements for companies when financial statements are compiled, and audits are concluded.
“Many businesses trading over the course of 2020 were negatively impacted. As a result, companies may need to consider the values of their assets and investments to account for impairment. Similarly, the value of certain investments and assets will result in your business needing to adjust upwards, to a fairer value if justified,” says de Lange.
The benefit of working with Worth.Business is that it conducts a quick and thorough online valuation, which allows businesses to have a clear sense of their financial worth ahead of the financial year end. “Using our online application, our clients have been able to plan more efficiently through routine valuations that keep pace with the constantly evolving nature of the way they do business,” he says.
Worth.Business eliminates cost, complexity, and effort as barriers to business valuations, ensuring that financial professionals and business owners can do credible valuations whenever needed. For more information on the company and the services offered, please visit Worth.Business
Distributed by Be-cause Integrated Communications
074 470 5996 / 021 447 1082
On behalf of Worth.Business
Founder and Managing Director: Johann De Lange