Business Valuations

The value of your business is not just a number, it is a measure of the growth you have achieved through your efforts and hard work. Plus, there are many situations that may mean you need to know the exact value of your business or understand its market worth. For instance:

• Annual benchmarking & strategic reviews – business value, alongside data, such as revenue, turnover and profit, can help you to make strategic decisions including investments and operational improvements, as well as provide a measure of success.
• Mergers or acquisitions – most business sales will require an accurate valuation that reflects market rates to ensure a fair price for both you and the buyer.
• Investment opportunities – investors will need to know the value of your business to assess risk and potential return on investment (ROI).
• Estate planning – if you’re intending to leave your business to someone after your death you will need to know its value so you can look to mitigate the tax burden from IHT.
• Exit and succession planning – when thinking about your retirement, you’ll definitely want to take into account the value of your biggest asset.
• Divorce proceedings – in most cases your partner will be entitled to half the total assets you shared as a couple, so a valuation will needed to assess this.
• Early stages of business sale – once you know what your business is worth, you will be able to have meaningful discussions with potential buyers, and, of course,
• Tax planning and HMRC disputes.

Valuations can be complex and there is always a subjective element, but as an important benchmark for the growth and success of your business and as a tool for attracting investors and buyers, or resolving legal disputes, they need to be as accurate as possible.

To get a meaningful valuation you will need to use a method that best suits your individual business, and this can vary widely based on what sector you operate in, how the business is structured, and how its assets are distributed. At Richardson Swift our expert valuers will usually use at least two methods to arrive at a range of values, so you get a truly representative idea of your company's worth.