TIG Corporate Finance

Business Valuation

Business valuations are complex, and depending on the reason for the valuation, it would be wise to seek independent professional advice.

 It is not an easy task to value a business, and one you should not attempt to do on your own, especially if the valuation is for any legally binding contract.

 What is a business valuation & why would you need one? 

 A business valuation is the process of determining the value of a business at a specific point in time. 

 Business owners and shareholders undertake valuations for several reasons:

  • To put a value on the business for a sale or a management buy-out (MBO)
  • To place a value on an equity investment
  • If you are looking to buy or sell shares to employees
  • For insurance purposes
  • To adhere to any shareholders’ agreement following a dispute
  • To use as a guide when growing a business that you intend to sell in the future

 How are businesses valued? 

 Businesses are normally valued using a combination of methods that look at the financial health and assets of the business, plus the contracts they have in place (length & value), their clients, any IP and trademarks, reputation, staff, and location.

One of the standard ways to value a company is to use a company’s EBITDA and apply a multiple that is consistent in the given sector.

As corporate advisors, we monitor each sector and keep up to date on industry multiples to aid us in valuing business. 

What is EBITDA?

EBITDA stands for Earnings before interest, taxation, amortisation and depreciation and it is commonly used as a tool to evaluate a company’s operational financial position. 

It is a way to measure the profitability of a business by focusing on a company’s core performance whilst removing non-operating and non-cash expenses.

As experienced corporate finance advisors, we use our experience and resources to provide you with a full valuation report detailing our indicative valuation of your business.

Contact us to discuss the value of your business.

Contact Us

TIG Corporate Finance, Metropolitan House, Long Rigg Road, Swalwell, NE16 3AS



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