How do I calculate the value of my business?

Valuations

Valuation is at the core of all transactions, whether it be considering the sale of your business, raising equity finance or making an offer to buy another business. Unless a valuation can be agreed between the parties, the deal will not happen and is therefore fundamental to your decision making. Valuations are not an exact science and involve an element of subjectivity. The true test is what a willing buyer or investor is prepared to pay and what a willing seller is prepared to sell for or give away in terms of shares. Our experienced team can assist you in assessing a value for whatever purpose.


Typical Valuation Process


How we can assist you with valuing your business

Adjusted Underlying EBITDA

Earnings before interest, tax, depreciation and amortisation is a common factor in assessing value. Assessing the underlying position is not always straightforward and can be based on historic trading, current trading but could also factor in future trading if there is secure or contracted revenue going forward. Adjustments to give a “normal” position will also need to be factored in. Our experts can advise on how to get to an underlying position.

Multiple

For profitable, trading businesses a suitable multiple is applied to EBITDA to give an Enterprise Value. We have access to transactional information which can support the valuation multiple or range of multiples based on business activity and sector.

Cash and debt adjustments

The Enterprise Value will be adjusted for cash and debt like items to give an Equity Value, which is the net value to shareholders.

Valuation report

To give an informed view on value, we need to fully understand your business and therefore need to spend sufficient time with you. The output from our review will be a comprehensive written report setting out our methodology and assumptions.


Get in touch

Robin Denissen-McIntosh

Robin Denissen-McIntosh

I am an ACCA qualified Executive in the Corporate Finance team covering our Aberdeen & Dundee offices. I joined Henderson Loggie in February 2020, after spending several years as a Management Accountant in private equity…