Why get a business valuation?

There are a number of reasons why you may want to know the value of a business. These include:

• To sell your business
• To buy a business
• To raise finance
• To set up an employee share scheme
• To assess an individual’s net worth in a divorce or legal settlement
• For strategic planning of what to do with the business in the future
• For tax planning

If you currently use Xero, Sage or Quickbooks as your accountancy software, we can create a report with multiple valuations very quickly. If not, we can still create a report although it may take slightly longer.

How does getting a business valuation work?

For us to provide you with a business valuation we will require/undertake the following (please note this list is not exhaustive depending upon your individual business):

• Details of the current business ownership and how long it has been trading
• We would start with a meeting to get to know the business and understand trends and any one-off events or unusual trading activity in the last 3 years and to discuss the current trends of the industry in which the business works
• Understand the key personnel in the business, the roles they carry out and how much each of them is paid
• Details of major customers and suppliers particularly if there is a reliance on one or two large customers/suppliers
• The last 3 years of finalised accounts and if this is over 3 months old current data for this year
• Access to online accounting data, where available
• Details of premises used by the business and who owns this and details of any rent or lease agreements
• A current value of balance sheet items such as equipment and stock
• Details of any finance agreements or loans that the business has
• Details of any licenses, contracts, dealerships or distributor agreements that the business holds
• The geographical area in which the business operates

Information required when you are buying a business:

• What skills and experience you have to run this business
• Any cost savings or profit improvements that you feel you can bring to this business

Our business valuation services start from just £500 + VAT to include a full written report and to discuss this with you.