Business valuations and due diligence

As experts in valuing and analysing both large and small businesses, we can back up your purchase and sale decisions with the in-depth, accurate company information you need.

Business valuations and due diligence

You would never put your house on the market without knowing how much it was worth, and you would never buy a car without knowing its true value.  When it comes to valuing your own business - or a business you want to buy - doing your research is critical.

We are experts in producing valuations of:

  • sole trader and partnership businesses
  • limited companies
  • group structures
  • shareholdings and partnership shares.

When might I need a valuation for my business?

Valuations are most often needed for:

  • price negotiations for a merger, acquisition or sale of a business or its goodwill
  • retirement from a business
  • employee share schemes
  • agreeing the tax treatment of these transactions and events. 

What valuation methods do you use?

For smaller businesses, we use:

  • market valuation of net assets including goodwill
  • Industry-specific methods such as multiples of gross recurring turnover
  • entry cost comparisons (i.e. the cost of starting from scratch).

For larger businesses, we may also use:

  • price/earnings models
  • dividend yield models.

What is due diligence?

Due diligence is a full financial appraisal of a business that's carried out to help a buyer or seller to make a properly informed decision by:

  • validating the company's financial statements
  • confirming and ascertaining the assets and liabilities of the business
  • identifying any risks
  • researching the financial and commercial background and history of the business.

How else can we help?

We are skilled at negotiating with other parties on your behalf, from HMRC to prospective buyers or sellers.

Get in touch

For a free initial consultation, contact Ian Steadman: