The production of a business valuation is just one of the specialist services that we can supply at Harrison Spence.
Although we predominately supply valuations for IFA and retail financial service businesses, our experience has been called upon to supply reports for many different types of operation.
Our formal valuations have in the past been used to support many different scenarios and our expertly prepared documents are readily accepted by legal teams who often the reports are ultimately viewed by.
The types of Valuation we provide:
There are many reasons for obtaining a valuation and not always as a pre-curser to a sale. For example, during the ten-year period we have been providing valuations, the most common scenario we encounter is a report being required for a marital divorce or a business divorce where the business is being split or one director is buying another one out.
Recently, we have seen a substantial increase in the number of valuations we are being requested to carry out for the purposes of internal share sale and purchase.
This is now becoming quite common with owners looking internally rather than disposing of a business to a consolidator. We are also aware that a number of companies need to have an agreed format for ongoing valuations in order to create a formal internal market and once they have the report they can then agree on this.
Our short video below provides an introduction to our valuation service.
The Basis of Valuation
Once appointed, we will work with you to produce a valuation tailor made to your own personal circumstances and requirements.
Traditionally though, there are several ways a business can be valued including:
- A multiple of recurring income.
- A profit based multiple. (EBITDA or PBT)
- A percentage of Assets under Advice or Management
- A fixed price IFA sale.
Recently, we have started to value parts of books of business as there is a developing trend for this type of transaction.
The value of your business depends on a combination of factors including the spread of client size; the age & demographic of your client list, and many others.
In order to ensure that the value we place on your business is as accurate as possible, our valuation calculations are based on the data provided and current market conditions.
We can provide a figure based on an open market valuation, as well as one for an internal market sale.
When there is a sale of equity, it is not always easy to agree on the final price between the buyer and the seller. In this situation, Harrison Spence can become an independent third party to lead the negotiations and handle the discussions between the parties mediating and facilitating a successful outcome.
REASONS FOR OBTAINING AN ACCURATE VALUATION INCLUDE, BUT ARE NOT RESTRICTED TO:
- IFA mergers and acquisitions
- Fund raising
- Buying/Selling of IFA and other financial advisory practices
- Internal sales or acquisition by colleagues
- Business divorce (director or partner split)
- Personal circumstances (divorce, retirement etc.)
We have provided valuations for all the above scenarios, we have also provided a number where the directors/partners of a business have been “Simply curious”- a sale is not even being contemplated but an up to date valuation was deemed useful.
How long does the Valuation take to produce?
All our valuations are produced “in house” by our own staff so to a certain extent it depends on our own internal workload. Usually though, the main time driver relates to how quickly you can supply us with all the necessary information that is required to produce the report.
Once in receipt of full information, we endeavour to produce a valuation document for you within 10 working days of confirmation of the data provided.
How much does a valuation cost?
The vast majority of our valuations can be completed for a fixed fee which usually starts at £4,800 plus VAT unless there is a special requirement or there is fundamentally more than one business.
For further information, please contact our office on 0207 60 20 500 or click here to use our contact form.
If the service you require is not listed on our website, please contact our office by telephone or e-mail and we will do our best to assist.
We also welcome any general business question you may have. We have a very established and wide range of industry contacts at all levels up to company CEOs
If we don’t know the answer, we can usually steer you in the right direction.