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Home » News & Insights » Avanti Case Study- Business Valuations

Avanti Case Study- Business Valuations

Posted on 20th September 2018

Business Valuation Case Study

One area that Avanti can help clients with is to give an indication of how much their business or company is worth; whether to sell, attract investment, maybe get a loan or just to know whether it is all worth it.

Example Case:-

  • Client X.
  • A Limited Company
  • Someone interested in buying the company
  • Investigations into the value established what the best method to value Company X would be
  • A valuation report was prepared that the client can retain, or use to seek the best price possible in any future negotiations.
  • Whether or not Company X is sold, at least the shareholders and directors now have some idea of the company’s current worth

Steps Taken:-

  • Client received an indication that a party was interest in buying his company.
  • Client contacted us for advice.
  • We asked pertinent questions of the client to assist in preparing the valuation
  • We carried out the initial research by using the power of the internet to make informed comparisons.
  • Depending on the research‘s outcome, depends how long the next steps take, but at each point we keep the client informed.
  • Following research and obtaining answers to questions we prepared the Valuation Grid to establish what value to put on the Earning Before Tax, Depreciation and Interest
  • A report was then prepared explaining fully to the client all of the available methods to value a company, what method we had chosen and why – and of course our opinion as to the value of the company.

So why could you want a valuation?

Maybe like Client X to sell the company, or to know what the shares are worth

What to do if you need a valuation?

  • The first thing is not to worry about this. In the end any business is worth what someone will pay for it, but at least you will have an idea!
  • Be honest and open with your Accountant – we can’t help you if you are not
  • Answer questions as quick as you can. The answers may lead to other questions, thereby delaying the final report
  • Make sure you have at least 3 years of accounts available
  • Get your paperwork in order, you never know you may just get the offer you want straight away
  • Ensure there are up-to-date accounts available, if not ask Avanti to prepare them urgently

So how can Avanti help you?

  • By having a qualified/experienced accountant carrying out an informed valuation you get to know where you stand, even before you begin negotiations.
  • We help by providing advice about the valuation and if applicable what are the next steps to take.
  • We can introduce you to other professionals such as commercial solicitors, business brokers, insurance agents and IFA’s
  • At each stage we keep the client informed and nothing is done without their knowledge and approval.

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Filed Under: News Tagged With: Business Valuation, Case Study

Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

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