CompexAfrica, an online marketplace for buying and selling companies in Africa, has launched a free online business valuation tool for persons planning on putting their companies up for sale. The easy-to-use valuation tool walks users through every step of the valuation process, giving them a picture of what buyers could pay for their businesses.
“It’s important for business owners to have an idea about what their business could be worth while talking to a business broker or prospective buyer,” said Ifeoma Uddoh, Chief Operating Officer of CompexAfrica.
She added, “The tool uses the Discounted Cash Flow (DCF) method by taking the expected future cash flows and “discounts” them back to the present day, to give a well-argued valuation. Users should ensure they use actual financial data, and they should compare value given with other valuation methods.”
The tool took several months of intensive development and testing, and is very easy to use. To get the value of a company, all you need do is enter the net profits (for the past three years or more), select a sector, year(s) of operation, reason for the sale, and age group you’ll like to sell to. After clicking Finish, an estimated worth of the company is shown, complete with a graph of net profits for the period indicated, average net profit and remarks, advising on how to go about the supposed sale.
CompexAfrica believes the free online business evaluation tool is a very significant addition to the Business Ecosystem in Nigeria. The tool can be found here.
Launched in August 2016, CompexAfrica is an online market place to facilitate the buying and selling of businesses and companies in Nigeria. Over 70 businesses are listed for sale on the platform.
The company received seed money and incubation from Sasware, the technology investment subsidiary of Signal Alliance, whose experience in the tech industry it hopes to leverage to deliver innovative solutions to fill the gaps in Nigeria business environment.