We provide company valuations for a range of reasons including; for the sale of a business, for exit planning, for taxation planning, for shareholding services, business acquisition and more. We have strong experience in all forms of company valuations and understand the importance of accuracy and attention to detail.
Some of our valuation approaches include:
The Market Approach
We use ‘The Market Approach’ to examine transaction data from the sale of sufficiently similar businesses in terms of size and industry sector. Less frequently, we can use public company share price data to calculate a comparable value for the business in question. Comparable transaction data is used from the previous sales of businesses across all industry sectors to determine business value.
The Income Approach
We use ‘The Income Approach’ to compile a detailed examination of forecast cash flows. This, combined with systematic and unsystematic risks that are facing the business are used to determine an appropriate discount rate to be used in a Net Present Value calculation. Usually, the discount rate may be defined as the yield necessary to attract investors to a particular investment, given the risks associated with that investment.
The Asset Approach
We use ‘The Asset Approach’ to value a a company that is financially distressed or is consistently loss making. This is the most relevant standard rather than accept continued declines in the value of their equity, rational shareholders choose to liquidate the company and put the proceeds of sale to an alternative economic use.
We use a combination of best practice and market knowledge to ensure that our valued customers receive a company valuation takes account of a number of factors. All cases are slightly different so we ensure that correct approach is used when valuing a business.
Please contact Terry Noone ([email protected]) to discuss your options further.