Business Valuations
Get in touchAt Professional Accountants, we provide expert-led business valuations for companies of all sizes and across the UK. Whether you’re preparing for a business sale, planning an internal restructure, handling a legal dispute, or attracting investors, our valuations are clear, defensible, and rooted in accurate financial analysis.
Our team uses industry-recognised valuation methods, combining technical rigour with practical insights to help you understand the true market value of your business.
Why Might You Need a Business Valuation for Your Company?
Business valuations of companies can include preparing for a sale or acquisition, bringing in new investors, settling a divorce or partnership dissolution, issuing shares, or managing inheritance or tax planning.
A valuation is often required in disputes over shareholder equity, succession planning, or when a business is used as collateral for funding. In all cases, an accurate valuation helps ensure that decisions are made with a fair understanding of business worth.
What Does a Professional Business Valuation Cost?
The cost of a professional business valuation ranges from £2,000 to over £5,000, depending on the business size, complexity of the valuation, and purpose of the report.
Costs are primarily influenced by factors such as the level of assurance required (audited vs non-audited), turnover band, presence of multiple entities or subsidiaries, and whether the valuation is for internal planning, sale, or legal purposes.
Contact Professional Accountants to get customised pricing for your company’s valuation.
Do Business Valuation Services Cover Sales, Mergers, Divorce, or Shareholder Disputes?
Business valuation services often support a wide range of events and transactions, including full or partial business sales, mergers and acquisitions, shareholder buyouts, matrimonial asset division, probate valuations, and partnership disputes.
Each use case requires a tailored approach—especially for contentious scenarios like divorce proceedings or legal disagreements where the valuation must be legally robust and defensible in court.
What Methods Are Commonly Used to Value a Business?
A professional business valuation can use several recognised methodologies depending on the company’s structure, financial performance, and valuation purpose, including:
Asset-based valuation – Calculates the total value of tangible and intangible assets minus liabilities, suitable for asset-heavy or liquidation scenarios.
Earnings multiple valuation – Applies a market-based multiple to the company’s past or forecasted profits to estimate fair market value.
Discounted cash flow (DCF) valuation – Projects future cash flows and discounts them to present value based on risk and cost of capital.
Comparable company analysis – Benchmarks the business against similar firms or recent transactions within the same sector.
Entry cost method – Estimates how much it would cost to recreate the business from scratch, considering assets, setup, and development expenses.
Industry-specific methods – Tailors valuation techniques to sector norms, such as revenue multiples in technology or EBITDA-based models in manufacturing.
How Long Does It Take to Complete a Business Valuation Report?
For straightforward cases, a business valuation can often be completed within one to two weeks. More detailed or legally sensitive reports, especially those involving multiple stakeholders or older financial records, may take several weeks.
The time required to complete a business valuation depends on the complexity of the business, the quality of available records, and the purpose of the valuation. We set clear timelines at the outset and work efficiently to meet your deadlines.
Is a Professional Valuation a Cost-Effective Way to Support Negotiations or Legal Matters?
A professional business valuation can be a highly cost-effective investment, particularly in scenarios where clear financial evidence can reduce conflict or help you negotiate more favourable terms.
Whether you’re selling shares, settling a dispute, or navigating a divorce, an independent valuation can prevent underpricing or overpayment. It also provides a level of objectivity and transparency that is often required by courts, tax authorities, or investors.
Can Valuations Include Asset Appraisal, Earnings Multiples, and Discounted Cash Flow?
We provide comprehensive business valuations that use multiple recognised methodologies to deliver accurate and defensible results, including:
Asset appraisal – Assesses the value of tangible assets such as property, equipment, and stock, along with intangible assets like goodwill and intellectual property.
Earnings multiples – Applies industry-relevant multiples to historic or projected profits to determine fair market value for established trading businesses.
Discounted cash flow (DCF) – Estimates present value by projecting future cash flows and discounting them for risk, inflation, and cost of capital.
Hybrid valuation models – Combine asset-based, income-based, and market comparison methods for a well-rounded valuation outcome.
Sector benchmarking – Compares the business’s performance and valuation ratios against peers and recent transactions within the same industry.
What Documents and Data Are Needed to Value a Business?
To conduct a business valuation, we generally require at least three years of financial statements, management accounts, tax returns, asset registers, shareholder information, and details of any liabilities or leases.
Additional documents such as business plans, sales forecasts, customer contracts, or shareholder agreements may also be helpful. A detailed review of both financial and operational performance is necessary to ensure a credible and accurate valuation.
Contact Professional Accountants for a consultation to get business valuation advisory for your company.