Company Valuation

A valuation of an organisation may be necessary for a number of reasons:

  • Converting a sole trader or partnership into a company limited by shares
  • Expansion of a sole trader business to a partnership
  • The introduction of new partners or retirement of partners
  • Sale of a business (in whole or part)
  • Purchasing a business (in whole or part)
  • Floatation of shares
  • Obtaining bank loans or other debt finance

 

The valuation of companies is not an exact science. Various assumptions have to be made about:

  • Tangible assets owned
  • The value of any intangible assets
  • Future earnings potential
  • Current financing structure
  • The market in which the business operates
  • Management expertise
  • Staffing levels and experience
  • General economic environment

We can help by providing various industry accepted valuation models and applying them to the specific company. This will provide a range of values that can then be used for the basis of negotiation of a suitable valuation for the purposes listed above.

 

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