Advisory
Company Valuation Services Before You Sell, Buy or Invest
A company valuation is an evidence-based assessment of a business or ownership interest at a particular date and for a defined purpose. The appropriate method depends on the business, industry, stage, available information and reason for valuation.
Purpose
Common reasons for valuation
- Sale of a business, brand, division or assets.
- Equity fundraising or shareholder transaction.
- Merger, acquisition or joint venture.
- Debt financing and lender requirements.
- Employee stock options or internal planning.
- Tax, dispute, succession, restructuring or regulatory purposes.
Methods
Valuation approaches
Income approach
Including discounted cash-flow analysis based on expected future cash flows and risk.
Market approach
Using comparable listed companies or comparable transactions where reliable data exists.
Asset-based approach
Assessing the value of underlying assets and liabilities, often for asset-heavy businesses.
Sector or stage-specific methods
Applied where the business model, stage or industry makes standard approaches unsuitable.
No single method is always correct
Enquiry
What we ask in a valuation enquiry
- Purpose of valuation.
- Legal entity and jurisdiction.
- Industry.
- Years in operation.
- Revenue and EBITDA ranges.
- Percentage holding or asset being valued.
- Desired completion timeline.
- Available audited or management financials.
- Contact details.
Value drivers
What raises and reduces a company valuation
Two businesses with identical profit can be valued very differently. The gap is explained by risk, transferability and the quality of evidence behind the numbers.
Recurring revenue and retention
Contracted, repeating income with low churn is valued far more highly than one-off project revenue.
Customer concentration
A single client contributing a large share of revenue is one of the most common reasons for a valuation discount.
Owner dependence
If customers, pricing and supplier relationships sit only with the promoter, transferable value falls.
Margin quality and cash conversion
Profit that converts into cash, with controlled working capital, supports a higher multiple than accounting profit alone.
Financial and compliance hygiene
Audited statements that reconcile with tax filings reduce perceived risk and shorten diligence.
Growth headroom
Spare capacity, an addressable pipeline and credible expansion levers justify paying for future performance.
Rules of thumb
How multiples are typically applied
These are broad market conventions used for a first indication, not a valuation opinion. Every business requires assessment on its own facts by a qualified professional.
- Enterprise value is commonly expressed as a multiple of EBITDA.
- Equity value equals enterprise value minus net debt, adjusted for surplus assets.
- Owner-operated small businesses are often assessed on adjusted owner earnings.
- Asset-heavy businesses are cross-checked against net asset or replacement value.
- Subscription and software businesses are frequently referenced to annual recurring revenue.
- Early-stage companies rely on comparable transactions and negotiated terms rather than earnings.
- Normalising adjustments remove one-off costs, personal expenses and non-recurring income.
- Working capital is normalised so the buyer inherits a functioning operating base.
When you need it
When a company valuation should come before the decision
A valuation is most useful before you commit, not after. Each of these moments sets a number that is hard to revisit later.
Before selling a company
Know your realistic range, the multiple your sector supports and the adjustments a buyer will argue, so you enter negotiation with evidence instead of hope.
Before buying a business
Test the asking price against earnings quality, net debt, working capital and comparable transactions before you make an offer.
Before investing in a stake
Price a minority or majority holding correctly, including discounts for lack of control and marketability where relevant.
Before a fundraise
Set a pre-money figure you can justify to investors and that does not damage the next round through excessive dilution or a down round.
Before signing an agreement
Share purchase, shareholder, buy-sell, exit and put-call clauses all depend on a valuation basis. Fix the method in writing before a dispute arises.
Before succession or settlement
Family settlement, partner exit, ESOP pricing and estate planning all need a documented, defensible value at a stated date.
Process
How a company valuation engagement runs
- Define purpose, valuation date, basis of value and the interest being valued.
- Collect financials, tax filings, cap table, debt schedules and key contracts.
- Normalise earnings for one-off items, promoter costs and related-party effects.
- Select methods appropriate to sector, stage and information quality.
- Benchmark against comparable companies and recent transactions.
- Test sensitivity to growth, margin, churn and discount-rate assumptions.
- Reconcile methods into a range with a reasoned conclusion.
- Present drivers, risks and the actions that would raise value before a sale.
Valuation and diligence together
Value the business, then verify it
A valuation is only as reliable as the numbers behind it. Buyers and investors normally run due diligence alongside or immediately after valuation, and findings frequently move the final price.
- Valuation sets the opening price; due diligence tests whether it survives evidence.
- Unrecorded liabilities and statutory dues reduce equity value directly.
- Customer concentration found in diligence usually compresses the multiple.
- Earnings that fail reconciliation with tax and bank records are discounted.
- Clean, verified records support the top of your valuation range.
- Both exercises should be completed before signing binding documents.
Valuation FAQ
Business valuation: frequently asked questions
How do I calculate what my business is worth?+
Start with sustainable annual EBITDA after normalising adjustments, apply a multiple appropriate to your sector and risk profile, then subtract net debt. Cross-check against asset value and comparable transactions before forming a view.
Is a valuation the same as the price I will receive?+
No. A valuation is a professional opinion at a point in time. The final price is set by negotiation, competition among buyers, deal structure and what diligence reveals.
How often should I value my company?+
Annually as a management discipline, and immediately before any fundraise, stake sale, shareholder settlement or exit process.
What documents are needed for a valuation?+
Three years of financial statements, current management accounts, tax filings, the cap table, asset and debt schedules, key contracts and a forward-looking business plan.
Guides
Read before your valuation
How to Value a Business Before Selling It
Normalise EBITDA, apply a sector multiple, bridge to equity value and build an asking range you can defend in front of a buyer.
Read the guide →EBITDA Multiples vs DCF: Which Method Applies
When earnings multiples, discounted cash flow, revenue multiples or asset value give the most reliable answer for your business.
Read the guide →