Expert insight from GS Verde Group

If you’re a business owner considering selling your company, raising investment, or preparing for succession, understanding your business’s true value is one of the most important steps you can take.

At GS Verde Group, we help business owners uncover and maximise their business valuation, using key financial metrics such as EBITDA to support informed, strategic decision-making.

In this article, we explore the importance of business valuation, explain how to calculate and use EBITDA effectively, and outline how GS Verde Group supports business owners through every stage of a transaction.

Why Business Valuation is Critical When Selling or Growing Your Business

A professional business valuation does more than provide a number - it delivers clarity, strengthens your negotiation position, and empowers you to make confident, data-led decisions about your future.

Whether you’re:

• Preparing to sell your business
• Raising investment
• Planning a succession strategy
• Exploring growth through acquisition

…understanding your company’s value is essential for long-term success.

At GS Verde Group, we deliver valuations that reflect both the financial health and strategic potential of your business. Our integrated team of legal, tax, finance and communications advisors ensure that every valuation is accurate, compliant, and future-focused.

Benefits of a professional valuation include:

• Setting a realistic asking price
• Identifying key performance improvements
• Attracting buyers or investors with transparency
• Reducing risk during deal negotiations
• Aligning future plans with business goals

How to Value Your Business: The Three Core Methods

Every business is unique. That’s why there are several ways to determine your business’s value.

The most commonly used valuation methods include:

1. Asset-Based Valuation

This approach focuses on the value of tangible and intangible business assets, minus liabilities. It’s most suited to asset-heavy industries such as manufacturing or construction.

2. Income-Based Valuation

Ideal for businesses with stable revenue streams, this model projects future earnings and discounts them back to present value. It’s often used in service-based sectors and for businesses with recurring revenue.

3. Market-Based Valuation

This method compares your business with others recently sold in the same sector, offering a benchmark rooted in current market activity.

Our multi-discipline team works with you to choose the most appropriate method - balancing strategic goals with financial accuracy to inform decisions on exit planning, investment readiness, or growth strategies.

What is EBITDA and Why Does it Matter?

EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortisation - is a key indicator of your business’s operational profitability. It removes external financial influences to give a clearer picture of performance.

Why EBITDA matters in business valuation:

• Creates a level playing field for comparing businesses across industries
• Helps buyers and investors assess the underlying profitability
• Enables calculation of valuation multiples
• Strengthens your negotiation position during a sale or investment deal

In sectors with stable cash flow - such as professional services or utilities - EBITDA multiples tend to be higher, reflecting strong valuations. For more volatile industries like retail or technology, EBITDA reveals crucial insights into operational resilience.

How to Calculate EBITDA for Your Business

There are two common approaches:

Method 1: Starting from Net Income

1. Take net income
2. Add back interest
3. Add back taxes
4. Add depreciation
5. Add amortisation

Method 2: Starting from Operating Profit

• Add depreciation and amortisation to your operating profit

Either method gives a useful view of cash-generating ability. To get the most from EBITDA:

• Remove one-off costs or income
• Ensure your financial records are accurate and up to date
• Seek expert advice to ensure consistency and relevance

Preparing Your Business for a Valuation or Transaction

Before entering the negotiation stage of a deal, whether selling or raising capital, preparation is key. This includes:

• Reviewing financial documentation: Ensure cash flow statements, income statements, and balance sheets are up to date and well-presented
• Improving EBITDA: Focus on cost control, efficiency, and removing non-recurring expenses
• Streamlining operations: A well-run business commands higher valuations

Our integrated team at GS Verde Group works with you across legal, tax, corporate finance, and communications to ensure your business is ready for valuation and due diligence, enhancing its appeal to buyers or investors.

Why Work with GS Verde Group?

At GS Verde Group, we provide expert valuation and EBITDA support as part of our complete end-to-end advisory service. Whether you are preparing to sell, raise investment, or restructure, we deliver:

• Accurate and strategic business valuations
• Insightful financial analysis including EBITDA
• Legal and tax due diligence
• Corporate finance support
• Communications and brand alignment to maximise buyer interest

Our multi-discipline approach - combining legal, finance, tax and communications under one roof - ensures that nothing is overlooked, and every element of your business is optimised to increase its value.

Unlock Your Business’s True Worth with GS Verde

Understanding and improving your business’s valuation is not just about numbers - it’s about preparing for growth, succession, or sale from a position of strength.

At GS Verde Group, we help business owners uncover the true worth of their company, empowering them to negotiate with confidence, attract serious investors, and achieve the best possible outcome from any transaction.

Get in touch with our valuation experts today and take the first step toward securing your future.