Business Valuations UK
Valuing a business correctly largely depends on why you want to have a company valuation in the first place. Whether you’re negotiating with prospective buyers, buying out fellow shareholders, supporting an employee share option scheme or for other HMRC purposes such as family involvement or even divorce settlements, Alpha-Financials will match an independent company valuation to the specific situation you have.
This is important to note, as there are many available business valuation methods – so choosing the right one is crucial. These different methods can lead to widely different valuations, so it is essential you match the optimum approach with the particular situation.
The most common question to start with is ‘how much is my company worth?’ To know this, you first need a clear insight into the entire business valuation ‘picture’.
Although a single figure will eventually be required for contractual purposes, it rarely makes sense when you are first trying to understand how to value a business in a very uncertain world. Establishing the background allows for a far richer picture of the business to be established, which is crucial to achieving an optimal valuation. Interestingly, using this technique, not only do potential buyers receive a better understanding of the business, but often the business owners gain new insights into the true value of the assets they have – which translates into additional confidence in asking for a higher price in negotiations. As a result, business valuations can involve many important elements of your company and its worth.
To see the whole picture, Alpha-Financials uses five key guidelines for valuing your business in a credible and meaningful way:
- Your business valuation is led by a team of qualified & experienced valuation professionals.
- We create a high-quality analysis that pinpoints what drives the value of your business, and within this, a sensitivity analysis is customised to your particular needs.
- We adhere to tried and tested company valuation principles, but go a level beyond this by recognising their imperfections and allowing relevant adjustments.
- We recommend taking external market measures of bigger yet similar businesses, which in turn allows us to provide excellent indicative company valuation metrics for comparative and/or justification purposes.
- We ensure that the integration of internal data, external information and value drivers is comprehensive, so you are then armed with a full “picture of value”. This picture recognises the inherent uncertainties of the company valuation process and as such is far more valuable than a simple ‘single number’ outcome.
“Rivington Accounts is an award-winning accountancy company based in Lancashire. We have engaged Alpha-Financials for a number of business valuations across a wide range of industries and have appreciated their specialist expertise, responsiveness and value for money service”
Martin Horton, MD
Why Alpha Financials for your Business Valuation or Project Valuation?
When it comes to determining how to value a business or a project, Alpha-Financials distinguishes itself from standard company valuations because:
- Our wealth of experience in the corporate, banking and SME world lets us quickly understand the needs of you AND your counterparty, be it a buyer, seller or financial institution.
- Our company valuation tool was developed in-house and has been tried and tested on a wide array of sophisticated and individually tailored company valuations. It removes the need for you to purchase or build costly financial tools and removes the pitfalls associated with often inflexible, off-the-shelf packages or overly simplistic profit multiples that are often favoured by accountants.
- Our outputs ensure your valuation not only looks professional, but is comprehensively backed up by meaningful analysis. Our company valuations include clear summaries of major outcomes, the all-important underlying assumptions and an overview of all sensitivities.
We know that the financial knowledge required to run your SME on a day-to-day basis is very different from the knowledge you need when deciding how to value a business. Alpha-Financials closes this divide by minimising the financial uncertainties typically encountered when valuing a project or company. Don’t take a risk with the value of your business. A professional company valuation service could save you thousands of pounds in the long-term and is an investment in the value of your assets.
Business Valuation UK: What you get
With our standard business valuation UK, you will receive:
- An initial face-to-face review of all relevant internal financial and operational information
- Research of relevant external market data
- An initial draft company valuation based on Alpha Financials’ business valuation model
- Interactive session for shaping the company valuation based on testing the sensitivities and assumptions
- Finalisation of company valuation model and comprehensive written company valuation report
- If required, a follow-up consultancy with one of our specialists, for example to assist with presenting the company valuation to a third party
In Summary: How to Value a Business:
If you’re asking:
How much is my business worth?
Can I buy my partner out?
Is it time to sell up and retire?
Is my partner offering a fair deal?
Does it make sense to merge our businesses?
Then get in touch with Alpha Financials.
