How to value a business
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How to Value a Business
Valuing a business - how to value a small business or small company

The two questions: 'How much is my business worth?' and 'How can I make it more valuable?' are of paramount importance to any business owner.

When it comes to selling the business, the most important question you need to ask is - how much is it worth? You may also want to know how to value a business.

There is no single formula that can be used to precisely value every private business. The seller will want to drive the price up, and potential buyers will want the opposite.

Although there are relatively easy ways to value certain parts of the business - such as stock, fixed assets (land, machinery, equipment and so on), there will very probably be a sizeable intangible element to the value of a business.

Intangible elements would include 'goodwill', which is the underlying ongoing trade and can include trademarks and the reputation of the company. Such assets are notoriously difficult to value, and in many cases will come down to how keen a potential buyer is to acquire the business in question. When looking at the overall value of a business, there are a number of different valuation methods that are commonly used - from using earnings multiples, to calculating how much it would cost to create a similar business.

Perhaps uniquely, R A Valuation Services Limited holds and updates a database of previously achieved open market sale prices to verify and justify any approach to valuation taken.

We specialise in providing assistance in how to value a business in the UK and Europe for the purpose of business sale and purchase, partnership or shareholder change, litigation, matrimonial and legal separation, incorporation, tax settlements, borrowings and business development.

Why not give us a call on 01425 402402 to talk through your requirement. You can also make an email enquiry by clicking here.

Generic Business Valuations
Can R A value any type of Business?
The valuation process can be applied to all types of small business provided that the business has a suitable trading history .... more >>

How does R A value a Business?
The valuation process is concerned, primarily, with an assessment of a justifiable value for goodwill .... more >>

What is R A Valuation Services Ltd?
Established in 1991, the focus was originally on opticians and goldsmiths .... more >>

Reasons for a valuation
A Business Valuation supported by a professionally prepared valuation report from an independent and authoritative source is an essential aid to:
  • Management or internal buyout
  • Business sale / Business purchase
  • Partnership and shareholder change
  • Litigation e.g. legal separation
  • Incorporation
  • Tax agreement
  • Borrowing and funding
  • Business development
  • Benchmark / Performance indicators for business
  • Report is definitive & realistic in the market place
RA Valuation Services Ltd
Recognised Authority
Valuation reports produced by RA Valuation Services Limited are acknowledged to be the authoritative form of business valuation for many small and micro business sectors and are accepted by:
  • HMRC
  • Bank managers
  • Other lenders & providers of finance
  • Accountants
  • Tax specialists
And an RA Valuation Services' valuation report is tailor-made for their purposes. Indeed, such is their authority that an RA Valuation Services' valuation report is normally insisted upon in support of negotiations.

The report itself is detailed and informative, professionally presented and smartly bound.

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