Business and Share Valuations

There are many different situations where you may wish to obtain a valuation of your business or a commercial asset which include:

  • Planning and evaluating a business acquisition or disposal
  • Raising finance for a management buy-out
  • Engaged in shareholder restructuring and corporate reorganisation
  • Succession planning
  • Involved in a dispute such as a marital dispute or litigation

Typical problems that we come across

  • Net book valuations – The book valuation of the assets as per the Balance Sheet is not a reliable valuation method. The book value often includes historical historical (sunk) costs and relatively arbitrary depreciation. These amounts are unlikely to be relevant to any purchaser (or seller).
  • Unreasonable assumptions – Agreeing on the assumptions for projections based on historical trends and expected future occurrences and understanding the reasoning behind those assumption choices can be very difficult.
  • Misinterpretation of comparable – Identifying and interpreting market comparables (both for public and private) can be challenging.

How we can help

At McAvoy & Associates, we understand that securing an accurate and reliable business valuation is critical to making informed strategic decisions. Our experienced team have broad sectoral experience, providing an objective, independent valuation that reflects true value of a business.

 

Whether we are valuing an entire business or an individual shareholding, our valuations are based on:

  • Understanding and analysing the business operations and performance
  • Determining the appropriate valuation methodology
  • Providing industry and sector comparables
  • Analysing historic and future profitability trends
  • Consideration of broader economic factors affecting your business