How to value your business – accurately
There are lots of reasons why you might need to value your business. Perhaps you’re thinking of selling or merging your company? Or maybe you need to buy another person’s stake in the firm? Or perhaps you’re involved in a management buyout?
In all of these instances – and others – it’s essential to make sure your business is valued accurately. Undervalue it and you could be seriously out of pocket. Overvalue it and you could deter potential buyers. And don’t forget to look at all the complex tax aspects too.
That’s why you should never use one of the many online business valuation calculators. They simply can’t value your company’s intangible assets. No algorithm can accurately put a figure on your brand equity or the expertise of your staff. And why would you trust one to do so?
At THP, our business valuation team takes a different approach. Our experienced company valuation experts are able to identify and assess both your tangible and intangible assets. This means you get a business valuation that is properly in line with today’s market – and helps ensure that you don’t get short changed in the future.
Need to know how much your business is worth?
Request a callback from a member of our senior team.
Why choose us for a business valuation service?
At THP, we provide a business valuation service that can help you in a wide variety of situations. For example, an up-to-date company valuation is essential if you are thinking about:
- Selling or merging your business
- A change of ownership or welcoming a new business partner
- A management buyout
- Attracting a new shareholder or board member
- Expansion
- Your exit strategy or retirement planning
- The exit of partners, directors or shareholders
- A valuation for probate, divorce, investment or tax purposes.
Read on to learn how our expert team can value your business, or get in touch to learn more.
How we value your business
“UK businesses now invest 20% more in intangible assets than any other asset.”
(Source: HM Treasury)
Valuing a business accurately is a much more complex task than totting up the value of your tangible assets. Yes, your balance sheet is a helpful starting point, but most businesses are worth more than just their net assets.
This is why you need to have your business valued by someone who understands the value of your intangible assets. For example, these are just some of the intangible factors that can help determine your business’s real value:
- Financial performance and forecasted sales
- Strength of brand
- Existing customer base
- Strength of customer relationships
- Experienced management team
- Skilled workforce
- Strong supply chain
As you can see, accurately valuing a business isn’t a case of making a simple equation. It’s all about truly understanding the hidden worth of intangible assets and future potential, as well as the numbers on your balance sheet.
In addition, all the tax implications involved in transferring ownership need to be considered so that everyone is fully aware of any potential liabilities.
So don’t base important decisions on inaccurate business valuation calculators. Get in touch with our company valuation team today for impartial, expert help to open the next chapter for your business.
Meet out Business Valuation Team
We’re ready to help you value your business
THP’s business valuation experts are just a phone call away. Based at our offices in Wanstead, Sutton and Chelmsford, they help business owners across London, Essex and beyond.