Business Valuation Services

Most businesses will need to be valued at some point or other; whether for a business sale or for taxation reasons. The company valuation process can be difficult, as it requires a thorough understanding of every factor that could affect the value. It is important to choose the right methodology and work with an experienced firm in order to generate the most accurate valuation possible.

Monetta is experienced in dealing with valuation negotiations, both with the tax authorities and other commercial organisations. Our written valuation reports can be used for a multitude of purposes and are created with your objectives in mind, which helps to ensure they are thorough, correct and suitable for your requirements. Thanks to our many years of work in this field and our network of resources, Monetta can provide a current valuation for your business no matter its size or the stage in its life cycle.

Get in touch with our team of business valuation experts today by calling your local Monetta office or using our online enquiry form to request a call back at your convenience.

Business Valuations

Valuing a business requires a lot of experience and good judgement. Your business will be unique, and whilst comparisons can be drawn to other similar businesses, our experts will work with you to identify the factors that make your business different. This will ultimately help to justify the valuation we give and ensure it is as accurate as possible.

We provide valuations for many purposes, including the following:

• Partnership or shareholder retirements;
• Business purchases or sales;
• Share valuations for employee share schemes;
• Negotiations with HM Revenue and Customs;
• Inheritance tax valuations; and 
• Forensic support.

It can pay dividends to get an accurate valuation and, sometimes, it makes sense to get a second opinion when a valuation has already been prepared by a third party. Our valuations are always prepared using the most appropriate valuation basis and rather than being ‘theoretical’, our valuations are shaped by our significant experience of real transactions in which businesses have been bought or sold, or valuations that have been agreed with HM Revenue and Customs (HMRC).

With a wealth of knowledge in company valuation models for private businesses of all sizes, Monetta is in the strongest possible position to provide business valuations that meet your demands.

Why Choose Monetta?

At Monetta, our business valuation service takes advantage of our many years of experience in applying relevant valuation methods to deliver the most accurate results for every objective. We will produce a valuation report that considers all the factors, including tangible and intangible assets, present and future cash flows, and any other elements that can affect the value of a business.

Monetta's valuation reports can support you with tax compliance and ensure you meet your obligations. Our business valuation service can also help to resolve shareholder disputes or support private companies in finding a buyer and earning a fair price. We will select the appropriate valuation methods based on the specific circumstances of your business, which delivers a more accurate estimate than a one-size-fits-all approach. Monetta has expertise in working with businesses across many different industries, which also means we can apply any relevant contextual factors and offer a deep understanding of the value of your business in the relevant context.

We are not just valuation experts - we also provide a wealth of related services to ensure we can meet all of your business' financial needs. With a network of offices in the North West, we can scale up our services for even the largest and most complicated businesses. At the same time, we never lose our personal touch. Our team is always invested in your organisation and will work to understand its objectives so we can support you to deliver on your ambitions.

FAQs About Company Valuation Services

What is the best business valuation method?

The valuation of a business can be complicated and multi-faceted, as it must factor in every single element that could affect the current market value. As such, there are several business valuation methods that might be used to try to reach an accurate estimate. Choosing the best approach demands a full understanding of the purpose of the valuation, and a wealth of experience in delivering high-quality business valuation services. Common methods include:

Asset valuation

The asset valuation method estimates the value of a company's assets, minus its liabilities. It is most commonly used for companies with significant tangible assets, such as manufacturing businesses or real estate companies, and for firms that are winding down. This can be calculated based on the business' balance sheet, or by estimating how much it would cost to replace company assets at their current market price. This may be the best option for company valuation in capital-intensive industries.

Market-based valuation

This method calculates the value of a business based on the present value of similar companies in the same industry. This requires that comparable companies have recently been sold or have known market values, and the accountant must adjust for any differences in scale or specifics to produce an accurate business valuation. The method is more effective when there is good data on comparable transactions involving similar, publicly traded companies, such as information on the price to earnings ratio (P/E ratio). As such, it may be preferred if a company's market sector is mature and comparable data is readily available.

Revenue method

This approach focuses on the company’s ability to generate future profits, income or cash flow. It is often used for well-established companies with steady profits and predictable future earnings, although there are two different ways to approach it. For a small private company, an approach based on adding a multiplier to its total earnings (before interest, taxes, depreciation or other factors) may be used. This is often used for start-ups or companies with high growth potential but limited profit history, where industry norms are used to determine an appropriate multiplier. The industry rate times revenue method demands input from an experienced accounting professional to reach an accurate value.

The other method is the discounted cash flow. This type of business valuation determines the present value of a business by projecting its future cash flow, and applying a discount rate based on the time value of money and any risks identified. This is preferred for larger businesses with predictable earnings, or those where current market conditions do not represent the full potential value of a company.

Hybrid methods

For some purposes, business valuation services may involve a combination of different approaches to determine an accurate market value for an organisation. There is also a need to adjust for risk factors related to business interests, and to take account of the contextual elements that are unique to each sector. Knowing the strengths and weaknesses of each method based on the type of business and the specific circumstances is vital. The team at Monetta has delivered business valuation services for companies of all sizes across UK industries, and we are ideally placed to calculate the sale value of a business or estimate the value of its net assets for tax purposes. Contact us today to learn how we can help.

When does a business need a valuation?

Businesses need valuation services for reasons ranging from financial reporting to fulfilling their legal obligations. Some of the key stages where an organisation might need a valuation include:

• Mergers and acquisitions: Buyers and sellers need to determine the fair market value of a business to negotiate a deal that accurately reflects its worth.
• Raising capital or financing: Investors and financial institutions will want an accurate valuation - either to assess the potential return on their investment, or to determine the level of financing they are willing to provide.
• Exit planning: An accurate valuation allows a business owner to set realistic expectations for a sale price or manage their own finances when planning to retire or transition out of a company. In partnerships or companies with multiple owners, a buy-sell agreement will often require a valuation when an owner exits or dies.
• Financial reporting and compliance: Valuation services may be necessary for financial reporting in compliance with accounting standards like the Generally Accepted Accounting Practice.
• Tax planning: Business valuation services help to determine the taxable value of assets, including Inheritance Tax and Capital Gains Tax liability, and an accurate valuation can prevent you from overpaying these taxes.
• Litigation and dispute resolution: In legal cases such as shareholder disputes, divorce proceedings, or business partner buyouts, an objective assessment of a company's worth may be needed.
• Strategic planning: An estimate of the current value of a business can allow owners and managers to make informed decisions about growth strategies. This informs decisions such as expanding operations, launching new products, or entering new markets.
• Insolvency: In cases of financial insolvency, a valuation determines the fair value of a company's assets. This helps liquidators or administrators to repay creditors or distribute assets among stakeholders during the liquidation process.

Whatever your reason for needing business valuation services, Monetta can help. Our valuations provide essential insights that help businesses make informed decisions, comply with legal and financial requirements, and position themselves strategically for future growth or transition.

Contact us

When you need an accurate business valuation, trust in Monetta. We can determine which method of valuation will provide the most accurate results for your purposes and draw from a wealth of experience to create a foundation for our valuation of your business. To learn more about our services, use our enquiry form to send a message by email or contact your local office.

You can also visit our team page to find out more about our expert advisers and what they can do for you and your business.