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How R A Valuation Services values a Business or Company

The Valuation Process (how a business is valued)
We are happy to explain the process and what you would need to provide, so why not phone the office on 01425 402 402. In the meanwhile you may find the information below to be useful...

Requirements are the latest (ideally three years of) accounts together with completion of a simple questionnaire.

The valuation involves working from numerous recognised accounting methods based around business performance and return on investment. In addition, each business is benchmarked using sector-specific guides to derive a figure that is fair and realistic in the open market.

Uniquely, a substantial database of earlier business valuations (across numerous sectors) developed by R A Valuation Services Limited over recent years enables each new valuation to be bench-marked against earlier results, ensuring that market trends are observed and greater accuracy achieved. Comparable data is up-to-date and highly relevant. In fact, the databases are enhanced by ongoing market research follow-ups which check goodwill assessments against sale prices achieved. For any sector that is new to R A Valuation Services, extensive research is undertaken on a per instruction basis, ensuring information is apposite.

Many other features are also taken into account such as the business location(s), presentation, customer profile, local trading conditions, competition and so on. R A Valuation Services requests photographs of the premises (if applicable). There is habitually no requirement for a site visit.
The Valuation Process


Frequently Asked Questions
Q What is R A Valuation Services Ltd?
A long established UK company that specialises solely in business valuation .... more >>
Q What makes a business (more) valuable?
Although a recent set of trading accounts showing healthy profits .... more >>
Q Can R A Valuation Services provide a specific company share valuation for an EMI or other share scheme?
R A has expertise in this area, including advice on minority discount valuations .... more >>
Q My accountant advises I need a valuation of my business for incorporation purposes. Is this something R A does?
R A Valuation Services is highly experienced at valuing businesses for this purpose .... more >>
Q Can R A provide a value a business for divorce proceedings?
R A Valuation Services' reports have been used in law courts on both a joint and single joint expert instruction basis .... more >>
Q Can R A just give me a "ball-park" figure?
In some circumstances R A can produce a Short-Form Market Appraisal .... more >>
Q What if my business has several outlets or locations?
Many of R A's instructions are for multiple site businesses .... more >>
Q What do I get with my valuation?
A report that is detailed and informative .... more >>
Q What information do I need to provide?
Don't worry, the questionnaire explains everything .... more >>
Q How long does the valuation process take?
R A offers a fast track service .... more >>



Q What is R A Valuation Services Ltd?
A R A Valuation Services Ltd is a UK registered company that since 1991 has specialised solely in business valuation (with no interest in obtaining further instructions to sell a business or provide financial or other services). As purely valuation specialists, all valuations are genuinely impartial and independent. When R A Valuation Services Ltd was established in 1991, the focus was on the optical and goldsmith sectors. Subsequently, healthcare organisations, retail and professional services have followed. Within the last twelve years - primarily as a result of requests from businesses and professional bodies, along with new resources and consultants - R A has been able to further extend and broaden the types of businesses assessed and have expertise across a huge range of business types and sizes, including highly niche organisations and the valuation of other intangibles such as software and trade marks.
Q What makes a business (more) valuable?
A Although the financials will often speak for themselves in terms of how a business is performing (and will continue to perform), there are a number of other factors that are examined in R A's assessment. These include external influences such as the economic climate at large; market conditions within the business sector; location - demographics and competition (local and wider); regulation, red tape and the threat of litigation. And internal influences (aside from financial) such as presentation; permanence of location; potential. These influences are covered further in our articles (click here). Essentially, though, there's nothing more influential than a recent set of trading accounts showing healthy profits.
Q Can R A Valuation Services provide a specific company share valuation for an EMI or other share scheme?
A Enterprise Management Incentive (EMI) schemes are tax advantaged share options designed to help businesses recruit and retain employees who have the skills to help them to grow and succeed. An independent share valuation is often a key step in the implementation of an employee share schemes for an unquoted company. Tax and other fiscal valuations in the UK are subject to special rules which have evolved out of a combination of case law and legislation. R A Valuation Services Limited has expertise in providing accepted goodwill and share valuations for these purposes.
Q My accountant advises I need a valuation of my business as I am considering incorporation / have recently incorporated. Is this something R A Valuation Services does?
A Frequently. Your new limited company can buy the goodwill of the existing business, and this has beneficial tax implications. Although there can never be a guarantee of HMRC's initial acceptance, R A Valuation Services has a proven track record of outright acceptable by HMRC (including where a challenge or investigation has been made). Furthermore, an independent assessment (i.e. not one by the business' own accountant) will be looked upon favourably by HMRC. R A Valuation Services, with its knowledge of HMRC's operation, is highly experienced at valuing businesses for this purpose. R A Valuation Services will happily discuss any details with you and/or your accountant.
Q Can R A Valuation Services provide a value a business for divorce proceedings?
A Yes. R A's reports have been used in law courts on both a joint and single joint expert instruction basis, for expert appraisal purposes in matrimonial and other litigation settlements. R A will happily discuss any details with you and/or your solicitor.
Q Can R A just give me a "ball-park" figure?
A Although there is no such thing, in some circumstances R A can produce a Short-Form Market Appraisal, which is intended as a guide to valuation only (and its limitations should be considered). It can be upgraded to a full Valuation Report retrospectively, should it be intended for use in business sale/transfer, partnership/director/shareholder change, incorporation, matrimonial settlements or fund raising.
Q What if my business has several outlets or locations?
A Many of R A Valuation Services' instructions are for multiple site businesses. In these cases you must let us know if you need one valuation for the whole business or a separate valuation for each site as an indpendent business. In the latter case, separate trading accounts will be needed for each site. Please contact R A for costs of multi-site business valuations.
Q What do I get with my valuation?
A The results of our valuation process in a professionally presented electronic PDF report. The report itself is detailed and informative. It gives details of the scope of business activities, staff, premises, catchment demographics and competition, financial information and fixtures, fittings and equipment. Please note that R A Valuation Services values the business and does not value land or property.
Q What information do I need to provide?
A Accounts for the last three years together with completion of a simple questionnaire about the business and, if appropriate, an internal and an external photograph ... But don't worry, the questionnaire explains everything and is very straightforward to complete.
Q How long does the valuation process take?
A Typically within two weeks from receipt of the completed questionnaire(s), accounts and photographs. R A offers a fast-track service (subject to availability - please contact R A for details).

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Registered Office: Elizabeth House, Unit 13 Fordingbridge Business Park,
Ashford Road, Fordingbridge, Hampshire SP6 1BZ
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