Have you heard about company valuations but not sure of advantages for instructing one? Or have you been wondering what your company is worth but are unsure if you need a valuation?
Jo Haigh gives an overview of what a company valuation actually is and how it can help with many situations.
Why would you have a company valuation? Well, have you ever sold your house? You don’t just put it on the market and hope for the best, do you? You would usually have an estate agent come and give you some idea of what it might be worth. It is exactly the same with a business.
Whilst you might have an idea of what you would like for your business, what you would like and what you might get could be two different things. Therefore, you should always start with a valuation. The valuation is what we call a technical valuation, it might not be exactly what you’ll get, you could get more or less depending on the buyer. It is a good idea however, to at least have a bench mark.
Are there any other reasons you may have a company valuation? You might want a valuation because you’ve had a fall out with your shareholders, or you want to leave and you want to know what your proportion of the shares are. It’s important to know that if you haven’t got a shareholders agreement in place, how we actually value a minority shareholder might be completely different because, for instance, if you only hold 49% of a business, it’s not necessarily going to be worth pro rata the 100%.
Learn more about the company valuations and how we help you with this service here.