A company valuation report is a formal document that estimates a business's fair market value. It can be used for various purposes, including selling a company, raising funds, or settling shareholder ownership disputes, for example.
Whilst value is different from worth (worth is the sum you will sell at and what someone else will pay), a formal valuation will give you at least some clear parameters, which in turn will allow you to make a decision on what to do next.
At fds, we take pride in our thorough valuation reports, which can often be the initial phase for those embarking on their succession planning journey. Whether considering any exit option such as a trade sale, management buyout or employee ownership, a valuation report is essential to ascertain the company’s value now or at a future date.
Whilst our standard and sophisticated valuations differ slightly in terms of the level of information reviewed and evaluated, as standard, you can expect to see a general overview of your industry’s performance, relevant market deal information, a company analysis (including any hidden assets and financial accounts) and deal methodology.
Our extensive experience in company valuations ensures you are in capable hands.
Standard valuation:
- This will provide you with an assessment of your business's value at a specific point (usually your current year-end) using various methods typical for your sector.
- It will be based on real-time deals in your sector, with a brief market analysis of sector activity and a summary of relevant deals and multiples as achieved.
- We will provide a summary of your market sector.
Sophisticated valuation:
- In addition to the above, we will be able to provide you with an assessment of the business value at two specific points (usually your current year-end and a future date) by using a variety of methods typical for your sector.
- For the future valuation, we will also provide a commentary on changes we may recommend you consider to enhance the valuation further.
- Valuations will be based on real-time transactions in your sector, as well as the industry generally.
- This valuation will include a research-backed market analysis of deal appetite, prospects, and trends for your industry.
- If needed and available, we will also review and comment on any issues in your articles of association and shareholder agreement that may affect the valuation.
- For minority shareholding valuation issues, we will provide a discount justification if required.
