Here are the answers the to questions we are asked most frequently:
What type of businesses do you value?
Our specialists and valuation experts provide high-quality valuation advice and opinions for businesses, whether a sole trader, partnership or non-quoted company, operating in a number of sectors and markets, including but not limited to the following:
- information technology;
- professional services;
- wholesale and distribution;
- retail and ecommerce; and
- real estate.
We also value start-up businesses.
Do you value a shareholding, including a minority shareholding or interest, in a non-quoted company (i.e. limited company)?
Yes, we can value a shareholding, including minority shareholding or interest, in a limited company. This involves valuing the limited company as a whole and then determining the value of the shareholding in question. This is done in light of the rights attached to the shareholding in question as per the articles of association.
Who do you value businesses and shareholdings for and for what purpose?
We are regularly instructed by law firms, existing financial advisers, business owners and corporates throughout the UK to value businesses and shareholdings for a range of contentious and non-contentious reasons, including:
- shareholder and partnership disputes;
- divorce proceedings and matrimonial disputes;
- tax planning (capital gains tax and inheritance tax);
- financial reporting (purchase price allocation, intangible asset and impairment reviews)
- insurance claims
- fund raising
How will you value my business or shareholding?
Firstly, and mostly importantly, we will speak to you to gain an understanding of your business. Then, using our specialist experience and sector knowledge, we will analyse the financial performance of the business in the recent history. Depending on which method is appropriate, we will use one of the following commonly accepted valuation methodologies to value your business:
- discounted cash flow;
- dividend yield;
- costs; and
Sometimes we will use more than one valuation methodology or industry specific ‘rule of thumb’ valuation methodology to value your business. This is to ensure that our valuation advice or opinion is robust and well-reasoned.
Will your valuation service include valuing the leasehold and freehold property in my business?
The valuation of a leasehold and freehold property is usually assessed by a local surveyor or commercial estate agent. This is not included in our valuation service. However, if required, we can use our partners to assist in this regard.
What information do you need from me to value my business?
After agreeing the terms of engagement, we will send out a preliminary questionnaire in which we will usually ask for the following documentation (subject to their availability) to commence the valuation process:
- shareholders’ agreement (if enacted);
- last three years’ financial statements;
- up to date management accounts;
- cash flow statements; and
This will be followed by a meeting or call to obtain an in-depth understanding of your business.
What format is your valuation advice or opinion provided in?
Depending on the purpose of the valuation and your instructions, we can provide our valuation in the following formats:
- valuation advice letter;
- valuation memorandum or report;
- expert report (complying with Part 25 of Family Procedure Rules or Part 35 of the Civil Procedure Rules); or
- a financial model.
My business was valued previously. Do I need to obtain another valuation?
All valuations have a ‘valuation date’, i.e. date at which the business and/or shareholding was valued. Sometimes, the individual circumstances can change significantly and very quickly due to both internal and external factors. This often results in the previously obtained valuation being rendered out of date. In which case, an updated valuation will be required.
What makes you different from the others?
Not only do you get access to one of the most experienced and skilled valuations team who bring industry and sector specific knowledge to the fore from the outset, you get access to a team that is highly professional and personable.
How do I instruct you?