UK
Ireland
Business valuation & modelling services
Business and asset valuations can provide a comprehensive understanding of value, supporting strategic, financial, tax and regulatory needs.
The value of a business and its components should be a core consideration for any company and at any stage of its business lifecycle. Knowing the value of a business or asset can be crucial for several reasons, serving as a foundation for strategic, financial, and legal decisions.
Our dedicated team of experienced valuers are renowned UK valuations experts for finncial reporting, commercial and tax purposes.
Working alongside our financial modelling team, we use a full range of the most up-to-date valuation methods to produce highly robust valuations designed to stand up to external scrutiny.
We work with all sizes of businesses from large, listed FTSE-100 and international firms through to small owner-managed businesses. We have experience across sectors and provide bespoke valuation analysis tailored to stakeholders’ needs.
Our services
S&W offers a breadth of business and asset valuation services. Whether as part of a valuation assessment to facilitate a commercial transaction or post-deal to support a tax position or accounting filing, we can help with the full range of valuation needs:
Financial reporting and fund valuations
We support with asset valuations, business combinations and purchase price allocations (especially valuation of intangible assets acquired under IFRS 3, FRS 102 or ASC 805). This also includes the valuation of intangible assets (e.g. brands, customer relationships, patents, recipes, know-how, software, other developed technology, IP R&D and all other forms of IP), real estate, capital equipment, inventory, deferred consideration and earn-outs.
We also offer unrivalled expertise in impairment testing (value in use and FVLCD models, discount rate determination under IAS36 or FRS 102 Section 27), lease accounting, incremental borrowing rate determination (IFRS 16), fund and portfolio valuations (in accordance with the IVSC) and complex security valuations.
Our experience enables us to navigate the complexities of financial reporting for valuations and deliver a quality service.
Tax valuations
Our tax valuations division support clients with employee share option schemes (e.g. EMI, CSOPs), growth share, sweet equity valuations, EOT valuations, carried interest valuations, IHT, CGT, income tax and stamp duty.
Our specialist expertise also extends further through IP transfers (including cross-border), corporate transactions (including share-for-share exchanges, business transfers and goodwill on incorporation) and any liaising with HMRC negotiations.
Our tax practitioners are industry renowned and possess have the technical skills to handle your tax valuations, no matter what the circumstances or sector.
Commercial, contentious and regulatory valuations
Commercial, contentious and regulatory valuations involve share pricing to facilitate periodic internal share trading, departing shareholders (for example in accordance with the company’s articles of association), fairness opinions, M&A and sales and divestments.
We also support business exit strategies, whether it’s an end or a new beginning, we’ll address the obstacles to sale, identify opportunities to boost values and ensure a smooth exit process. Our support in sensitive contentious (pre-litigation) shareholder valuations, meanwhile, brings our proven personal touch.
Commercial dispute resolution
Our commercial dispute resolution services involve assessments of damages, preparation or rebuttal of expert witness valuation reports, analysis of offer prices to squeeze out shareholders and the impact of misstatements in financial statements.
Litigation and disputes typically involve tight deadlines. Experienced advisers with the skills and resources to hit the ground running and stay on top are essential to success. We support with valuations in cases such as post-acquisition disputes, intellectual property disputes, unjust enrichment, unfair prejudice and misrepresentation.
Financial modelling
Developing an efficient and flexible financial model enables you to discover key assumptions and variables impacting the organisation. It also allows you to assess scenarios, ensuring key decisions are based on an understanding of the consequences.
Our expert financial modelling services encompass:
Model build - Investment appraisal, acquisition, disposal and aggregation models, project financing, debt restructuring, strategic planning, budgeting, complex valuation models, working capital and cash flow as well as any ad hoc support.
Model review - Base case and sensitivity integrity reviews, tax and accounting compliance, model enhancements and assumptions to align with key project and financing documentation.
Training and development - Model build, model review, maintenance and any ad hoc support.
Why choose S&W for your business valuation & modelling?
Our diverse and dedicated valuations & modelling team at S&W combines individuals with extensive valuation and relevant sector experience, led by partners and directors from valuation teams in the leading global accountancy firms.
The team’s size and breadth ensures we have the flexible capacity and experience to reliably produce a robust, high-quality and cost-effective piece of work, meeting your requirements.
Working in close partnership with our financial modelling team and other specialist valuers (real estate and capital equipment) we are able to deliver valuations covering all asset classes.
We are actively involved in leading trade and industry bodies that shape the changes affecting your business and can provide the specialist expertise to ensure your valuation is handled with quality and assurance.
Get in touch
When you decide to get a valuation of a business or an asset, or support in the preparation of a complex model, you need to know you can trust the providers of the service.
Please get in touch with one of our partners or directors to further discuss your valuation needs.
Olivier Pecon
Head of Valuations
Frequently asked questions
Why business valuations are important
A business or asset valuation estimates a value (depending on the relevant valuation basis) of a business/asset and typically should consider a number of macro-economic, industry-related and asset-specific factors.
A valuation analysis is useful not only for judging the performance of a company but also for planning any future transactions/restructuring, helping you to weigh up any potential advantages or drawbacks and ensuring compliance with tax and accounting standards.
The purpose of a valuation can include:
- Regulatory annual fair value measurement
- Assessing the value of your fund or portfolio
- Tax requirements following the transfer of a company or assets
- Comparison of a business against peers or industry benchmarks (eg. for management incentive plans)
- Enhancing the credibility of in-house valuation analyses to help secure funding and investment
- Facilitating a transaction and helping establish the sale price for the buyer and seller (non-contentious and contentious basis)
- Forming part of your business exit strategy alongside financial modelling
How do you know when it is time to value shares in your business?
Every business’s story is unique but there are several ways to assess when a valuation is needed. You might find you have outgrown your business, are in the process of transmitting your shares to a family member, establishing a new management incentive plan or contemplating a diversification of your assets.
Alternatively, the business may look at a series of acquisitions financed by a mix of capital increases and debt. If it is the latter, you may also need someone to assess the impact of synergies on the value of your company and help you in the overall process of acquisition. A corporate event (acquisition, divestment, transmission, corporate reorganisation) will usually trigger a valuation requirement for multiple purposes (tax, commercial and accounting).
Can you value an unprofitable business?
Yes, valuations of businesses are not just based on historic or short-term profit. Some businesses can take time to get established and reach maturity, and most would have expectations to become profitable in the future.
To value such assets, several methods are available (EV/revenues based on adjusted revenues, multiple-stages DCF and the venture capitalist method). Alternatively, estimating a liquidation value of the business may be the most appropriate approach to assess its market value.
How do I value my company?
The value of a business depends on the financial performance of the company but also external factors such as industry-specific trends or macro-economic inputs (inflation rates, currency risks etc.). The value of a business will reflect concrete elements, such as real estate or financial assets, but it should also include abstract elements such as unrecognised IP or the company’s goodwill. S&W can recommend the type of valuation that works best for your needs.
Can I use an internal valuation for different purposes?
Several bases of valuation co-exist in practice (market value, fair value, OMV etc.) and are applied for specific purposes (commercial, tax, accounting, regulatory etc.). Although all bases of valuation share similar principles, they are not identical and can be challenged at later stages. S&W can provide detailed guidance to ensure the analysis prepared is compliant and aligned with market practice for your specific requirements.