What is my business or shareholding worth?

is one of the most common questions our clients ask. As a business owner it is important one might say even critical, to monitor the value of your business and the value of your shareholding in it.

For many of you, the business valuation both now and in the future is key to planning for retirement as it can represent a large proportion of your wealth and be key to future financial planning and timing for retirement. You need to know as an owner, what that value is now and importantly what factors or business direction and strategy can positively increase that business value in the future. You can use a business valuation as a start-point for future business and personal planning.

Our clients have found it gives them a confident base point for future wealth and makes them consider their future strategy and retirement timing. You probably have a good feel for what your house is worth and your car is worth but do you have an accurate view on what the value of potentially your largest asset is? Often we find that views are based on “the guy in the pub” or “my mate sold his business for”. G+E can provide an accurate range and also help identify areas you may wish to address in your business to improve the prospects of getting the best sale price down the line.

There are numerous situations when a business may need to be valued; the most common scenarios are when you’re selling your business or buying another, for finance raising purposes, when a merger is contemplated or perhaps if you need to incentivise management by introducing a share option scheme of some description. We also undertake valuations for tax, probate, forensic and matrimonial or shareholder dispute purposes.

Business or share valuations are not an exact science. Methods of valuation may be affected by the type or purpose of the valuation and by different scenarios. Various factors affect the value range including industry and market factors, track record, size of business and many other matters. The judgement applied by ourselves to your business and the value of your shares is based on comparable company information and many years experience.

Garbutt + Elliott Corporate Finance can advise you by:

  • Determining the correct valuation range dependent upon your scenario
  • Preparing a valuation report in a range of formats suitable for your needs
  • Assisting negotiations if required based on a business valuation as part of a wider transaction or
  • Acting in an independent expert capacity in shareholder disputes or matrimonial and divorce situations..

If you know what your business or shareholding value is, then this is the springboard for the future and starts a business planning process or retirement plan which has a real chance of increasing value for you after taking this first step. We will always be delighted to help you and have an initial free of charge discussion about your plans for the future and a step by step process to get you there.

For further information please contact Richard Feltham or Tariq Javaid