Perhaps you are thinking about selling your business or maybe you are just curious to know what all your hard work has built. Whatever the reason, the true market value of a business can only really be discovered by assessing the desire from buyers.
Value is not the same as worth; worth is the sum you will sell at and what someone else will pay. However, a formal valuation will give you at least some clear parameters, which in turn will allow you to make a decision on what to do next.
Business valuations are used for all sorts of reasons, from shall I stay or shall I go, to if I am going to go what do I need to do to my business to make the exit worthwhile…of course, you may have fallen out with your fellow shareholder, or have a desire to exit, but they don’t.
Whatever the reason a company valuation will provide you with sufficient information to make that critical decision.
fds understands the different reasons for a valuation may necessitate different requirements as to the complexity of a valuation document. As such we are able to offer either a standard or sophisticated valuation report.
Standard valuation:
- This will provide you with an assessment of your business's value at a specific point (usually your current year-end) by using a variety of methods typical for your sector.
- It will be based on real-time deals in your sector, with a brief market analysis of sector activity and a summary of relevant deals and multiples as achieved.
- We will provide a summary of your market sector.
Sophisticated valuation:
- In addition to the above, we will be able to provide you with an assessment of the business value at two specific points (unusually your current year-end and a future date) by using a variety of methods typical for your sector.
- For the future valuation, we will also provide a commentary on changes we may recommend you consider to enhance the valuation further.
- Valuations will be based on real-time transactions in your sector, as well as the industry generally.
- This valuation will include a market analysis of deal appetite, prospects and trends for your industry backed up by research.
- If needed and available, we will also review and comment on any issues in your articles of association and shareholder agreement that may affect the valuation.
- For minority shareholding valuation issues we will provide a discount justification if required.
