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  • Home
  • Accounting
  • Valuations
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  • Contact Us
  • HMRC Tax Returns
  • Sole Trader Accounting
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  • Company Accounts - 279
  • Dormant Company Accounts
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  • Business Valuations
  • Share Scheme Valuations
  • Purchase Price Allocation
  • Testimonials

Business Valuations for UK Companies and Shareholders

DMP Accountants & Valuations Limited provides practical business valuation support for SMEs, owner-managed companies, shareholders, directors and professional advisers across the UK.


A business valuation may be needed when you are considering a sale, dealing with a shareholder exit, planning a restructure, preparing for investment, liquidation, reviewing a company’s position, partner break-off or simply trying to understand what a business may be worth.


For smaller and owner-managed companies, the challenge is often knowing where to start. A valuation is not just a simple multiple of turnover. The value of a business usually depends on its maintainable profits, cash flow, customer base, risk, assets, growth prospects and the reason the valuation is being prepared.


DMP helps clients approach this properly, with clear valuation guidance and commercially sensible support.

Business valuation support - SMEs & owner-managed companies

We support directors, shareholders & small business owners who need a clearer view of business value

This may include:

  • Valuation guidance before a possible sale
  • Shareholder exit or buyout discussions
  • Internal planning between directors or family members
  • Reviewing the value of an owner-managed company
  • Valuation support before investment or funding discussions
  • Understanding whether a proposed offer looks reasonable
  • Business valuation support for advisers and clients
  • Initial scoping for more complex valuation matters


The aim is to give clients a clearer, more structured view of value, rather than relying on guesswork or generic online calculators.

Discuss a Business Valuation

When a business valuation may be useful

A business valuation can be useful in a range of situations.

You may need a valuation if:

  • You are thinking about selling your business
  • You are buying into or exiting a company
  • A shareholder wants to leave
  • Directors need to agree a value between themselves
  • You are planning for investment, funding or succession
  • You want to understand the value of your company before making decisions
  • You need valuation input for accounting, reporting or advisory purposes
  • Your accountant, adviser or solicitor has asked for valuation support


Sometimes the valuation does not need to be overly complex. In other cases, the scope needs to be more detailed, particularly where there is a dispute, transaction, tax matter, audit requirement or external reporting need.

 

Quite often and sneakily, if you're planning for an exit from the start of the business lifecycle - it may be an excellent idea to get advice to ensure your company has the best corporate structure possible for proceeds to be extracted efficiently using strategies such as Substantial Shareholding Exemption (SSE), or Business Asset Disposal Relief (BADR). 


Other times, early valuation and modelling helps determine the numbers, targets and KPIs you need to meet in order to maximise your impact and exit proceeds. 


We help clients understand what level of valuation support is appropriate before work begins.

What affects the value of a business?

Business value depends on more than revenue.

A company with high turnover but low profit may be worth less than a smaller business with reliable earnings, strong margins and low risk.


The factors that often matter include:

  • Maintainable profits
  • Cash flow
  • Revenue quality
  • Customer concentration
  • Recurring income
  • Owner dependence
  • Staff and management structure
  • Assets and liabilities
  • Growth prospects
  • Market conditions
  • Sector risk
  • Comparable business sales
  • Reason for the valuation


For small and owner-managed companies, the most useful valuation work is often based on a practical understanding of the business, rather than applying a formula without context.

Our approach to business valuations

We start by understanding why the valuation is needed.

That matters because a valuation for a potential sale may not be the same as a valuation for a shareholder discussion, internal planning, financial reporting or advisory work.


Once the purpose is clear, we can consider the most appropriate valuation approach. Depending on the circumstances, this may involve:

  • Earnings-based valuation methods
  • Profit multiples
  • EBITDA or maintainable earnings
  • Discounted cash flow considerations
  • Asset-based valuation methods
  • Market evidence and comparable transactions
  • Adjustments for risk, owner dependence or one-off items
  • Review of financial information and business context


The final approach depends on the company, the available information and the reason the valuation is being prepared.

Business valuations for small companies

DMP is particularly well suited to supporting small and owner-managed companies where the valuation needs to be practical, understandable and commercially sensible.


This can be useful where directors or shareholders want to understand value before making a decision, entering negotiations or speaking to other advisers.


We can help with early-stage valuation guidance, internal planning and smaller business valuation matters where the scope is clear.


Where the matter is more complex, we can help identify what is needed and, where appropriate, introduce clients to a suitable professional partner.

Support for advisers, accountants and professional clients

We also support professional advisers who need valuation input for their clients.

 This may include accountants, consultants, solicitors or advisers who need a valuation view for an SME, shareholder matter, transaction discussion or financial reporting point.


Our background in technical valuations and financial reporting means we understand that valuation work needs to be clear, reasoned and properly supported.


Where a formal valuation report is required, the scope and purpose of the work will be agreed before we begin.

Complex valuation matters

Some valuation matters require specialist scope, detailed modelling or additional professional input

 This can include larger corporate transactions, litigation, tax-clearance work, matrimonial disputes, complex shareholder disputes, audit-heavy valuation matters or sector-specific valuations.


Where a matter falls outside our direct scope, we can help clients understand the likely requirements and, where appropriate, introduce them to a professional partner with the right specialist experience.


This means clients still receive practical guidance at the start, without being pushed into the wrong level of service.

Why use DMP Accountants & Valuations Limited?

DMP Accountants & Valuations combines accountancy, tax and valuation experience.

For business valuation work, that matters. A useful valuation is not just a number on a page. It needs to reflect the financial information, the business model, the risk profile and the purpose of the valuation.


We work with SMEs, directors, shareholders, corporate clients and professional advisers across the UK. 

If you're a micro-company or regardless of size and would like oversight - reach out to us; and we can assist you with your enquiry and provide guidance and a quote - Valuations@dmp-accountants.co.uk

Our aim is to provide valuation support that is clear, commercially realistic and appropriate for the decision being made.

Information we may need

The information needed depends on the purpose and complexity of the valuation.

For an initial business valuation review, we may ask for:

  • Recent annual accounts
  • Management accounts, if available
  • Turnover and profit information
  • Details of directors’ salaries or owner drawings
  • Balance sheet information
  • Business activity and sector
  • Customer or contract information
  • Reason for the valuation
  • Any offers, negotiations or shareholder discussions already taking place


We will confirm what is needed based on the circumstances.

Ask About Valuation Support

Find out more about other valuation services we provider

Business valuations are one part of our wider valuation work. DMP also supports companies, advisers and auditors with share scheme valuations, purchase price allocations, incremental borrowing rate calculations and financial reporting valuation matters. 

View Valuation Services

Business valuations FAQs - Valuations@dmp-accountants.co.uk

It depends on the company’s profits, cash flow, assets, risk, sector, growth prospects and the reason the valuation is being prepared. Revenue alone is not enough to value a business properly. 


Yes. DMP supports small and owner-managed companies with practical business valuation guidance, particularly where directors or shareholders need a clearer view before making decisions. 


Turnover can be relevant, but it is rarely enough on its own. A business valuation usually depends more on maintainable profits, cash flow, risk, assets and market evidence. 


Yes. We can assist where directors or shareholders need valuation guidance for a potential exit, buyout or internal discussion. 


Where suitable, we can provide valuation work with an agreed scope. If the matter requires more specialist input, we can help define the requirements and may introduce a suitable professional partner. 


Yes. A valuation review can help you understand the possible value range, key drivers of value and issues that may affect a future sale discussion. 


Yes. We can support accountants, consultants, solicitors and other professional advisers who need valuation input for SME clients or owner-managed companies. 



UK accountants providing valuation, tax and business advisory services with precision and integrity. 

 Serving clients across the UK and overseas, including Wakefield, Leeds, Yorkshire and London. 


Copyright © 2024 DMP Accountants & Valuations Limited - All Rights Reserved.

Registered in England and Wales - Company No. 15392114

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