Business valuation is a critical element of any transaction and can be tricky to determine. Our corporate finance advisors provide independent valuation advice for the purposes of exit planning, making acquisitions, tax planning, divorce cases or shareholder disputes. We leverage our market knowledge to give accurate and independent valuations of UK privately owned businesses.Book a meeting
We will evaluate your business and analyse all the factors that can affects its value. This will include its trading performance, market positioning, assets and liabilities. We will advise what components are driving and detracting value.
We leverage our extensive market expertise and deals knowledge to benchmark your business against competitors to accurately determine its performance.
We provide a robust and fully supported valuation to recognised industry standards. Our valuations are firmly rooted in valuation theory but benefit from our real-world practical experience to determine the price at which your business could be sold.
If your valuation is undertaken for exit planning or when considering an acquisition, we can help you make strategic decisions about financial ratios, product/service development, branding and the overall direction of the business that can increase its value in your ownership.
Selling, buying and negotiating the value of businesses is what we do. Our opinions go beyond theory.
We can be flexible in our approach to meet various budgets depending on the level of assurance required.
We add additional value by explaining how key value drivers can be used to your advantage.
Why Shaw & Co
Our highly talented people are creative, innovative and thrive when faced with a deal-making challenge. It's no surprise that we make deals happen and turn your ambition into a greater outcome.
Fees & charges
Our objective is to ensure that our fee more than pays for itself from the value we create for you and your business.
We have real world experience in delivering valuation opinions. We are an ICAEW registered firm and our opinions have been used robustly in private transactions, HMRC tax cases and divorce or shareholder dispute cases as expert witness. Our exposure both to the theoretical and the practical nature of deals means that we are perfectly placed to guide you on valuation of any business.
Yes you can, in fact it is a recognised valuation technique and one that we use. However, used in isolation this technique can be misleading. Every business is unique and as many factors as possible need to be taken into account to arrive at an accurate view. It is also likely that the amount of information that you are able to access on a similar business is limited, or potentially distorted depending on its source.
In some cases, yes - but very rarely. Valuation of a business starts from estimating the cash flows that the business will likely make in the future and assessing the risk or probability that these will be delivered. There are also various short cut techniques such as multiples of various trading metrics that derive an Enterprise Value. From there we look at the balance sheet to determine the level of cash, non-trading assets, debt and working capital within the business needed to support the trading. This can add or detract from the Enterprise Value and this is known as the Equity Value . The adjustment to get from one to the other is not linked to the net asset value of the business.
Yes, the Equity Value of a business (the amount that the shares will be sold for) always takes into account the levels of debt in the business as well as any surplus cash or other assets. It can often be the case that the level of debt can materially influence the valuation. Depending on where the business is in its life cycle, a large debt burden can prohibit an exit for a period of time whilst the Enterprise Value grows from the investment that the debt facilitated. In other cases a large debt burden can be the result of a poor working capital cycle which will need to be addressed to drive value into the equity.
It is very common for business owners to believe the value of their business is materially greater than its likely value in the market. This often comes from misunderstanding business valuation techniques, or from wishful thinking. However, if our valuation of your business is less than you had hoped, it will be the perfect time to begin a process together of business value creation armed with this new knowledge.
Our valuation reports are offered at a fixed price which we will agree with you before commencing our work. Our valuation fees start from £4,500 (plus VAT) increasing based on the complexity of the business we are valuing and intended use of the report.
No - We work exclusively with UK-based SMEs and small cap PLCs. However, our clients often have international activities and we regularly transact with overseas buyers and investors or arrange overseas acquisitions on behalf of our UK clients.
To value a business correctly you first have to truly understand it. This takes time. A valuation can be completed over a period of 3 to 4 weeks if information can be readily provided to us. We will need regular access to your management team to discuss the business and answer our questions.
We have specific sector knowledge derived from many years of collective deal making experience. However, we pride ourselves on the diversity of sectors we work with which challenges us to think creatively. This creative and challenging approach brings huge value to our clients when helping them to build robust business cases.
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