Correctly and competently assessing the value of a business in a dispute scenario is a complex task requiring the knowledge of specialist forensic accountants. We provide accurate, comprehensive and measured reports into the value of business ventures.
Comprehensive business valuations can be required in a number of situations, including shareholder disputes, bankruptcy and business extinguishment, tax investigations, criminal proceedings and divorce. In many of these cases a fair result can only be produced if the business valuation is meticulous and reliable. Therefore we have a team of forensic accountants who have wide ranging expertise in all areas of business valuation.
To provide a sound business valuation our forensic accountants will conduct a thorough investigation of the company, including the consideration of:
- Business Assets
This should include any property, stock and other physical assets, along with the value of patents and other intellectual property.
- Turnover and Profits
Our forensic accountants can conduct an in-depth financial analysis to assess current and future earnings and profit potential. Analysis of both the specific financials and overall market trends can be used to calculate the maintainable profits, upon which a forensic accountancy business valuation can be based.
- Earning Based Valuations
This requires our forensic accounts to value a business by multiplying its maintainable profits by an appropriate multiple.
Forensic accounting techniques are able to place a figure on the value inherent in a business resulting from its reputation and brand.
- Director’s Shareholdings
Placing a value on a company’s shares is a complex process requiring the knowledge of specialist business valuation forensic accountants.
- Minority Discount
Consideration must be given to the relative value of shareholdings. For example, holding a 40% share in a company may not necessarily reflect an entitlement to 40% of the valuation of the business, due to differing levels of control or influence over the business.
The services of our forensic accountants to provide business valuations can be employed across the whole lifeline of the issue. At pre-action we can provide a preliminary assessment of value, and if the issue reaches litigation we can create full forensic accountancy expert reports and provide a forensic accountant expert witness services.