Share and business valuations – how we can help
Why do things need to be valued?
You may need an independent valuation for any number of reasons – to comply with accounting or regulatory standards, for tax, litigation, family or commercial purposes. There Is far more to a valuation than the final number. The real challenge is arriving at a valuation that is appropriate and fit for purpose. This involves a delicate interplay of business acumen, legal expertise, technical knowledge and practical experience.
In a famous Court judgment, the Law Lord described a fair valuation as “the price that a willing buyer will pay a willing seller in an open market”. So you can apply all sorts of arithmetic techniques, published information, earnings multiples, etc, but still not get to the “right” answer. Many will remember the “dot.com” boom when many technology companies were sold at ridiculous multiples, and many even before they had earned a penny. And then there are other businesses which may not even be worth as much as their asset value.
The expert valuer is often more of an artist than a scientist. He or she may use a number of techniques to arrive at an indicative range of values, but at the end of the day, it is their experience and judgement that really matters. That is where we can help.
Your need for a valuation may be for one of the following reasons:
- an existing shareholder that needs to be bought out
- for supporting negotiations in a trade sale, merger, restructuring or fundraising
- for bank security purposes
- in litigation or matrimonial cases
- for financial reporting purposes
- for taxation
How can we help?
- We give commercial advice to companies, partnerships and individuals on valuations in the context of acquisitions, disposals, mergers and restructuring proposals across a wide range of industries
- For taxation purposes we undertake and review valuations, including business restructuring, succession planning, share buy backs and management incentives, as well as intellectual property matters and valuations of goodwill for incorporation. Our work includes post transaction valuation checks, inheritance tax valuations (including the ten-year charge and lifetime transfers) and valuations required for PAYE and Stamp Duty purposes. Assets valued for tax purposes include shares and share options for HMRC approved and other schemes, loan notes and other financial assets, goodwill, deferred consideration and intellectual property.
- In intellectual property cases we advise on the valuation of items such as trademarks, brand names, know-how, customer lists, patents and licences
- We offer dispute resolution services and work with forensic investigators, providing valuation advice within the field of dispute resolution, litigation support and expert valuations
- We assist on regulatory and accounting matters, with advice on valuations required by Accounting Standards, including the value at which tangible and intangible fixed assets should be carried on the balance sheet. We help our clients estimate the fair value for employee award and incentive grants.
Our valuations teams will give you a robust valuation no matter how complex the case or information involved.
We specialise in share valuation in unquoted companies, intellectual property, unincorporated businesses, associated liabilities and intangible assets. We also provide expert valuations for litigation purposes, matrimonial, professional negligence and assessment of loss and disputed transactions.
We believe valuations should not be made as the result of a mechanical process alone. We use a variety of methodologies and techniques in deriving a valuation, but we also exploit our experience and apply our judgement to give our clients the quality of valuation advice they demand.