Valuation Partners is an independent valuer, not a broker. We do not market businesses or take a percentage of the sale price, so our view of value is not influenced by the deal.
When is this valuation required?
- Before deciding whether, and when, to sell.
- Before appointing a broker or corporate finance adviser, so you can judge their proposals.
- When an unsolicited offer arrives and you need to test it.
- When selling to management, employees, a co-owner or a family member.
- When planning which parts of the business, and which assets, will be included in the sale.
Who instructs us?
- Owners and shareholders planning an exit
- Boards considering a sale of a subsidiary or division
- Accountants and corporate finance advisers preparing a client for sale
What exactly is valued?
Most sales are of shares in a company, but some are of a trade and assets. The two can produce different outcomes for the seller because of tax, liabilities and which assets are included. We value what is actually proposed to be sold and explain how headline price translates into the amount the shareholders receive.
How is value assessed?
Buyers usually start with normalised earnings, often EBITDA, adjusted for one-off costs, owner remuneration and items that will not continue. They apply a multiple reflecting risk and growth, then move from enterprise value to equity value by deducting net debt and adjusting for working capital. We follow the same logic so that our valuation can be compared directly with offers.
We cross-check earnings-based conclusions against forecasts and available market evidence, and consider how deal structure, such as deferred consideration or an earn-out, affects the real value of an offer.
How the approaches are usually weighed
Typical
- IncomeNormalised earnings, often EBITDA, at a multipleUsual starting point
- MarketMarket evidence and forecastsCross-check
- AssetAdjusted net assetsWhere relevant
Headline price and what you actually receive
A headline enterprise value is not the amount that reaches the sellers. Deductions for debt and debt-like items, adjustments for working capital, retentions and deferred payments all change the outcome. We show this bridge explicitly, which helps you compare offers with different structures.
- Normalised EBITDA and the adjustments behind it
- Net debt, surplus cash and debt-like items
- Normal working capital and the risk of a price adjustment
- Deferred consideration and contingent payments
- Transaction-specific value versus market value
What factors influence the result?
- Normalised EBITDA
- Which add-backs a buyer is likely to accept and which they will challenge.
- Founder dependence
- How much of the business's performance depends on the selling owner staying.
- Recurring revenue
- Contracted or repeat income is generally valued more highly than one-off work.
- Working capital
- What level of working capital the business needs, which affects the price adjustment at completion.
- Deal structure
- Earn-outs and deferred payments carry risk and are worth less than cash at completion.
- Buyer universe
- Whether strategic buyers, private equity or management are the likely purchasers.
What information is required?
- Recent accounts and current-year management accounts
- Forecasts for the next one to three years
- A list of proposed normalisation adjustments
- Key contracts and customer analysis
- Any offers, heads of terms or indicative proposals received
We send a tailored information request once the scope is agreed.
What report will you receive?
A pre-sale valuation report sets out a value range, the earnings and adjustments underlying it, the bridge from enterprise value to equity value and the main sensitivities. Where it helps, we comment on specific offers and how their structure affects value.
See types of business valuation reports for how the scope of each type differs.
Timing and cost
How long will it take?
If you have up-to-date management accounts and forecasts, a pre-sale valuation can usually be produced within a few weeks. Where an offer is on the table with a deadline, tell us and we will say whether the timetable is achievable.
How much does it cost?
Fees are fixed by reference to the scope agreed in advance. Our fee does not depend on whether, or at what price, the business is sold.
How our fees are set →Frequently asked questions
Do you sell businesses?
No. We provide independent valuations and do not act as brokers. That separation is deliberate: it means our view of value is not linked to securing a sale.
Will buyers accept my add-backs?
Some, not all. Buyers typically accept adjustments that are clearly one-off and well evidenced, and challenge ones that look like normal running costs. We assess each adjustment and show the value with and without the contentious ones.
How does an earn-out affect value?
Payments that depend on future performance are uncertain, so their value today is less than their face value. We can estimate the value of contingent consideration and compare offers on a like-for-like basis.
Should I get a valuation before talking to a broker?
It can help. An independent valuation gives you a basis for judging a broker's suggested asking price and fees.
Is the sale price the same as market value?
Not necessarily. A particular buyer may pay more because of synergies, or less because of risk or financing. Market value reflects a typical buyer; we can also comment on value to a specific purchaser.
Can you value just the trade and assets?
Yes. An asset sale excludes the company itself, so the valuation focuses on the assets and goodwill transferred and the liabilities that remain with the seller.