M&A valuations
Understanding both the likely value and valuation mechanism can assist in the decision-making element of the M&A process and maximise the outcome of any transaction.
Business valuations
The expertise to select the most appropriate method for the circumstance – and the experience to assess the variables that drive the result
One of the most common questions we’re asked is “What is my business worth?”
When asked for a business valuation, our response is: there are many ways to value a business or shareholding.
Which one is right for you will depend on your business context, and the reason for the valuation. Finding the answer blends the art of business valuation with practical real-life insights and the science of valuation theory.
Sometimes, a broad, illustrative figure will do – perhaps if you’re a business owner considering your exit options. But eventually, you’ll need a number for your business valuation that stands up to external scrutiny – say for tax purposes, a shareholder exit, litigation, or setting up an EOT or MBO.
It takes professional judgement combined with many years’ experience to determine the appropriate calculation method, maintainable earnings figure, and enterprise valuation multiple. You also need to consider the balance sheet and allocation of those assets into adjusting and non-adjusting items to generate the equity value, the enterprise to equity bridge.
Even then, the amount you might realise from a sale can be very different. Because a valuation is one thing, but price is another. And there’s a lot you can do to add value for your shareholders or business owner.
As part of the wider corporate finance team advising and supporting over 100 transactions, including sales, acquisitions and fund raising, a year we have access to real life experiences to compliment the theoretical underpinning required to produce an appropriate, credible valuation, and one which is robust enough to withstand scrutiny and challenge. And with in-house M&A advisors, tax experts and due diligence specialists, we can help you maximise the value your shareholders receive if you do proceed with a sale.
Our clients say
“Nick was great. We’re an unusual business but he worked through the valuation very thoughtfully and gave us some helpful clear, commercial advice.”
Ben Richards, Director, Dunham Bridge Company
In-depth experience with business valuations
Every year we undertake valuations of shares, options, growth shares, intangible assets, and other financial instruments for a wide range of needs and requirements, giving advice to assist in transactions, settle disputes, or understand tax liabilities.
Expert valuations
We undertake valuations where there is either a matter in dispute or the courts require an independent valuation of an asset as part of a legal process or insurance claim.
Tax valuations
Valuations for probate, employment, and connected party transfers all follow the same principles but often with important distinctions in approach or the knowledge base required.
Portfolio and accounting valuations
We undertake valuation of assets held on the company’s balance sheet be they employee options, goodwill, other intangible assets, infrastructure assets, or corporate investments.
Expert determinations
This includes both speaking and non-speaking valuations to settle disputes between shareholders.
Strategic valuations
An understanding of the valuation process can help define, shape and benchmark the strategic development of the company.
Valuations of a company’s shares
Annual and bi-annual, to assist with execution of value-based Management Incentive Schemes, in company share reorganisations or as information for minority shareholders e.g. for Inheritance Tax.
Growth shares
We have a specialist offering in the valuation of growth shares using a combination of probability weighted expected returns model and Black Scholes Merton option pricing model.
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Get a credible, independent business valuation
If you have need for a company or share valuation or want to have an indication of the current value of your company as context for considering your future plans, talk to our experts.