Business valuations

Robust valuations by experienced accounting professionals

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44 (0)330 024 3200 and discover how we can help you.

Looking to sell your business, issue shares or raise finance? Get an accurate valuation from our expert valuations team.

Why would I need a business valuation?

A business valuation gives you an accurate picture of your business’s worth and there are many instances where you might need one.

If you’re looking to sell your business, a valuation can help you set a realistic asking price. If you’re looking to expand your business, a valuation can help you determine how much equity you need to give up in return for the investment you need. If you’re planning on taking out a loan, your lenders may require a valuation to help them determine how much collateral you need to put up. Finally, a valuation may be needed for estate planning purposes or when incentivising employees through a share scheme.

Whatever your reason for needing a business valuation, we can provide you with an accurate and up-to-date assessment of your business’s worth. We can also work collaboratively along side your existing advisors or experts from our tax team to assist with any associated taxation matters.

Why choose Hillier Hopkins for your business valuation?

Many websites advertise online business valuations in minutes. However, to calculate the accurate worth of a business is more complex than that.

A business is not a liquid asset and assessing its value requires knowledge and expertise to select the right valuation methodology for your business. Many factors need to be considered, including the sector in which it operates, where the business is in its growth cycle, and how reliant the business is on its owners.

Our valuation experts have extensive experience in providing valuations for SMEs and family businesses, from the very simple to larger and more complex entities. We have access to the latest software, extensive private company data and the most up to date metrics to give you a robust and accurate valuation.

 

Valuation purposes

Share option schemes

Share option schemes and Employment Management Incentives (EMI) are a great way to incentivise your employees and increase staff retention. An accurate valuation helps you to price your shares fairly and determine the exercise price for the options and thus any tax liabilities. Armed with a clear understanding of your businesses worth, you can design an attractive share option scheme that benefits both your employees and your business.

Personal tax

The value of your business has significant implications for your personal tax position. In particular Capital Gains Tax and Inheritance Tax are affected and so an accurate valuation is essential for any major tax planning.

Raising finance

In order to raise finance for your business, you’ll often need a business valuation. It can be particularly important if you’re looking to raise equity financing, for example under SEIS and EIS, as investors will want to know how much their shares are worth. It also lets you know how much debt you can take on without putting your business at risk. With an accurate valuation, you’ll be in a better position to negotiate favourable terms and secure the financing you need to take your business to the next level.

Divorce

A watershed moment for any family and the business involved. A family-owned business is just one of the assets that needs to be valued for a divorce settlement. An accurate valuation from a trusted source can help in settlement negotiations. A divorce doesn’t need to spell the end for a business and with the right advice and planning we can help you keep your business on track.

Financial reporting

Our valuation experts can provide you with an independent valuation to assist with your financial reporting compliance. In particular our experts can assist with valuations required for Fair Value under IFRS 2 and FRS 102 Section 26 in respect of share-based payments reporting requirements.

Business expansion

Growth shares

The valuation of growth shares is complex and there is often a misconception that the shares are worthless when first issued. Contrary to this, for fast growing companies they can quickly become valuable to employees and give them a strong incentive to contribute to the future growth of the business.

These types of shares are becoming increasingly popular, particularly for fast growing businesses where an exit is on the horizon. They are also useful for family businesses where parents are looking to pass on future wealth to their children.

Growth shares are complex in nature and need careful planning. We provide you with accurate valuations for the business now, and give you possible outcomes for future scenarios so that you can make informed decisions.

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