Business Accounting & Tax

Business Valuations

There are a number of reasons a company may want to carry out a business valuation. They include:

• Buying and selling a business
• Making a gift of shares in a company/stake in a partnership
• For the purposes of a probate
• Share option schemes

Here at Kirk Rice, experience has taught us that valuing a business is more of an art form than an exact science. There are many things to be considered, and it’s not just about the organisation itself.

Our valuation technique combines some standard modelling along with our own judgment – based on decades of experience. Of course, a firm’s financial track record, its management structure, employees and its future prospects are all crucial to getting an accurate valuation. But there are peripheral things to consider too – like the economic environment, and the prospects of the particular industry a company operates in.

And for any company that wants to sell up, there are considerations that go beyond the valuation itself. One of the big questions is how do you prepare for selling a company? Take selling a home, for example. You will want to make it look attractive to prospective buyers, and may well want to fix anything that might stand in the way of a good price.

Selling a company is a far more complex affair though. This makes the right guidance critical in maximising its potential value. Kirk Rice works with businesses of all sizes to put together the right strategy to enable a company to enhance its value.

We offer two types of valuation:

Informal valuations

Popular with business owners that simply want to understand where their business is heading.

Formal valuation

For those businesses wanting a more in depth, detailed report and analysis.