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BUSINESS VALUATION

An effective business valuation service can help you determine the true market value of your company. Excellent for anybody seeking to resolve a dispute, sell or buy a business, looking for investment, wanting to get a better understanding of their financial security, and much more.

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Key Forensic Accounting Skills in the Business Valuation Process

Any situation where a business valuation is seen to be necessary will likely be stressful for all parties. An experienced forensic accountant can utilise their expertise to provide a valuation, supported by detailed analysis and knowledge, to ensure that the process goes through as efficiently as possible. 

The role of a forensic accountant requires years of training and experience. As a result, they have been there and seen it all across a wide variety of different fields and sectors. Therefore, no matter the reason, if you are in need of an accurate business valuation, look no further than Inquesta. 

Your specialist forensic accountant can support you in a number of ways, and utilise their expertise to ensure that your valuation is done effectively.

However, just having the ability to track down data and assets is not enough. For a forensic accountant to be useful in a business valuation, they must also be able to provide you with an accurate valuation of assets associated with the company, hidden or otherwise — we have a particular focus on valuing shares and trade. 

The actual process behind valuing company shares can be difficult as there are often a considerable number of things to take into account. For example, in a matrimonial dispute you may need to consider that a company built by one party from the ground up would have more value to them than their partner who had no association.

Common Methods to Skew a Business Valuation

There are all manner of different reasons why one party involved in a dispute may deem it necessary to attempt to alter the results of a business valuation, to their benefit.

Methods a party may use to attempt to ensure an inaccurate business valuation includes, but is not limited to:

  • Consciously delaying company bonuses to team members or senior management until after the valuation has taken place.
  • Bringing such bonuses forward, ahead of schedule, to before the valuation.
  • Deliberately overpaying company taxes prior to the valuation, only to then claim it back afterwards
  • Overpaying for high value assets
  • Exaggerating a firm’s current liabilities
  • Gifting money or assets to friends/family

A skilled forensic accountant will have the knowhow to spot any and all of the above and ensure that your valuation is as accurate as possible.

Common Causes for Business Valuation in the UK

There are a large number of different reasons a business’ owner may wish to undergo an audit of their operation in order to come up with a company valuation, including:

  • Exit Strategy: If an owner has earmarked a sale in the future, then it is likely a good idea to get a baseline value in advance.
  • Shareholder/Partnership Disputes: If there is a conflict, and either side wants out of the relationship, an independent valuation will be necessary.
  • Mergers and Acquisitions: If a merger or acquisition is in your company’s future, valuation can help you to determine a fair price.
  • Divorce Settlement: Unless a prenuptial agreement is in place, any divorce will likely include the sharing of assets, including a company. As a result, fair market value must be established for a fair division of assets.

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If you need a professional to conduct a thorough business valuation, contact our expert team of forensic accountants today.

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Business Valuation Methods

When it comes to valuing your company, there are a variety of potential methods you can choose to use. From valuing business assets, looking around at other values in your industry, checking business earnings, and more, it’s important that you utilise the most appropriate methods for your business. Additionally, it is also possible, and often recommended, that you consider using multiple methods to gain the clearest understanding possible. 

Your business valuation expert could recommend any of the following common options, or any number of methods depending on your situation:

Download a Free Guide to Business Valuation 

Valuing a business is always going to be a complicated, highly complex process. This is made all the more difficult when it comes as part of a dispute.

Our FREE Business Valuation for Divorce Lawyers guide is designed to support you and ensure that a difficult situation can be resolved as amicably as possible. 

Additionally, when it comes to business valuation for shareholders disputes, there are a variety of possible routes to take, all with their own pros and cons. Our FREE booklet will guide you through the process, helping you pinpoint your best steps forward. 

VALUATION FOR DIVORCE
SHAREHOLDERS’ DISPUTE VALUATION

Our Specialist Team

Inquesta’s skilled team of forensic accountants are here to help you to value your business. Our experienced professionals know exactly what it takes to guide you towards an accurate valuation.

rob-miller-inquesta-black-and-white

Rob Miller

Director of Forensic Accounting

A co-founder of Inquesta, Rob Miller is a chartered accountant, a member of the Institute of Chartered Accountants in England and Wales (ICAEW), and a Practising Member of The Academy of Experts.

With decades of experience in providing specialist forensic accounting services, Rob has been instructed to assist with numerous cases — such as financial investigations, criminal defence and confiscation proceedings, commercial and contractual disputes, valuation matters, and much more besides. He has acted on behalf of claimants, defendants, and as a single joint expert.

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How Inquesta Can Help with Your Business Valuation

The role of a forensic accountant in a business valuation case can be vital. This expert accountant is able to, as accurately as possible, draw from their expertise in order to determine an actual number for how much your company is worth.

They can overcome any attempts to mislead and circumvent the search for truth and ensure that your valuation is done as stress-free as possible.

All companies are unique in their own ways. Therefore, the process to value each business will also greatly differ. The experience of a forensic accountant means that, no matter what, you can be secure in the knowledge that you are in safe hands.

A skilled forensic accountant can even take the data compiled in your business’ valuation and make recommendations to further increase profitability. The Inquesta team of expert forensic accountants are on hand and here to help.

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FAQs

The process of valuing a business can vary greatly. This ambiguity comes as a result of the size of your company, the complexity of the process, etc. Generally, the time frame from initial consultation through to the final valuation can take anywhere from a couple of weeks up to a month or even more.

The cost of business valuation will ultimately depend on the size of your company and the level of complexity that comes with the case. For more information about how much a business valuation would cost, get in touch for a free consultation.

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