Contact Us

Different Reasons For Preparing a Business Valuation

iStock_000003058973XSmall coin stack web
Most business valuations are performed when a company is about to be sold, but there are many other events in the life of a private company that might require a professionally prepared valuation.

As an experienced UK business broker we are often asked to provide business valuations for private limited companies or partnerships. In most cases this happens at the start of a business sale process, but there are a surprising number of other situations where a professional valuation might be required. In most of these situations an objective, independent appraisal is needed to satisfy a third party such as tax authority or a court.
 
So What Are The Events That Might Require A Professional Business Valuation?
 
Over the years we have prepared formal business valuations in the following circumstances:

    Matrimonial Settlements

    All family assets have to be split when a couple divorce and this includes a business that has been built up during a marriage. An independent professional valuation of the business can be an excellent way to settle a disagreement about the real worth of a company.

    Buy-outs of Partners or Co-directors

    Situations often arise where business partners fall out, or one of the partners wants to retire. If the partners cannot mutually agree on the value of a business an independent professional valuation can be useful.

    Valuation of Goodwill on Incorporation

    When a sole trader or partnership is to be incorporated it is necessary to put a value on the business for both tax and accounting purposes. An independent professional valuation can prevent any disputes with the Inland Revenue.

    Evaluation of Third Party Offers for a Business

    When a business owner receives an unsolicited offer for a business it is often difficult to know if the price offered is reasonable. A professional valuation can put the owners mind at rest.

    Probate

    A professional valuation may be necessary to establish the value of a business for inheritance tax, or to suggest a buy-out value for the spouse of a deceased business partner.

    Long Term Financial Planning

    An Independent Financial Advisor or Financial Planner might request an independent valuation as part of retirement planning.

 
If you do decide to commission an independent valuation of your business make sure to use a professional broker or accountant with a specific qualification in corporate finance and business valuation.

 

If you are interested in finding out more about these and other issues relating to the sale of a private company one of our business sale experts would be delighted to talk to you in complete confidentiality. Click CONTACT ME to book an initial phone conversation or call us on 01604 432964.

 
We welcome comments on posts, and questions from our readers. Use the “Leave a Reply” box below. We answer all reader questions within 24hrs. If you would like to be informed about new posts on the theme of selling a private company click the “Subscribe” button at the right hand side of this page.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

* Copy This Password *

* Type Or Paste Password Here *

21,771 Spam Comments Blocked so far by Spam Free Wordpress

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

back up ↑
UA-35460329-1