Business & Share Valuations

Valuations of businesses may be required in a wide variety of circumstances, including:

• Business acquisitions, mergers or joint ventures
• Business sales or grooming a business for future sale
• Litigation (such as divorce/professional negligence)
• Existing or new shareholders/minority interests
• Employee incentivisation, via shares or options
• Tax planning/assessment

Business valuation is often described as an art rather than a science. While valuation is difficult, there are rules, although these rules are imprecise and require a large amount of experience to apply.

Many factors may influence the end result, including:

• Business activities
• Economic cycle
• Location
• Management structures
• Purpose of the valuation
• Tax considerations

Why Francis Clark?

We are experienced in all of the methods used in valuing businesses, in a wide variety of sectors and stages of maturity.

Quite apart from the extensive training we have had, our views are tested by the market, against HM Revenue & Customs and, in our expert witness roles, against other accountants in Court.

We track transactions and maintain an internal database of the various profit, turnover and asset ratios used in deals, at various points in time. This allows us to provide the best advice to both buyers and sellers on the value of their own or targeted businesses. Our database is expanding to bring in member firms of our international association the Leading Edge Alliance, without breaching confidentiality.

We recognise that providing a valuation is usually meeting only one part of a client's needs, and so our valuation expertise is usually linked with other services, for example:

Corporate Finance : advice on sale strategy and grooming for sale
Forensic Accounting : advice on divorce or hostile exits of shareholders
Tax : where, by using senior former members of HM Revenue & Customs, we can advise on strategy for minimisation of liabilities

At times elements of valuation may require other professional input, for example property valuation. With our extensive network of contacts we are well placed to recommend other experienced professionals.