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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