Considering an acquisition
Assess the target's earnings and cash-flow prospects alongside its reliance on customers, people and investment. Test the assumptions that matter before treating an indicative price as a settled view of value.
Valuation service
M&A and transaction valuations
A transaction puts valuation assumptions into a commercial setting: what is being acquired, how the business will perform and what the buyer is actually paying for. A clear valuation can support a purchase, sale or investment discussion by making those assumptions visible. The brief should distinguish a business valuation from transaction advice, due diligence and any separately required regulatory report.
When it is useful
Decisions this valuation can support
Preparing a business for sale
Understand the financial record a buyer will examine. Separate recurring performance from unusual items and identify matters that could explain differences between an owner's expectations and a buyer's assessment.
Negotiating investment terms
Consider how a proposed investment relates to the ownership interest, capital structure and terms on offer. A headline equity percentage does not describe every feature of a transaction.
Evidence and methods
How the value is assessed
Analysis may use maintainable earnings, discounted cash flow and relevant market evidence. Where useful, separate the business's existing performance from additional benefits expected by a particular buyer. The link between business value and equity value should be explicit, with the treatment of debt, cash and other adjustments defined in the scope.
Read about our valuation approach and Calvin Lim’s experience.
Information we may need
- Financial statements, current management accounts and trading updates
- Budgets, forecasts and documented commercial assumptions
- Indicative offer, term sheet or draft transaction structure
- Debt, cash, working-capital and shareholder-loan information
- Customer, supplier and key-person concentration information
- Details of unusual expenses, related-party arrangements and proposed synergies
What the work can deliver
Depending on the brief, the output may include a valuation report, a range of values, analysis of key assumptions and sensitivities, and an explanation of matters requiring further investigation. It should make clear whether the work addresses the business alone or also models specified transaction scenarios.
Scope, fees and timing
Information access, changes to transaction terms, forecast quality and the number of scenarios influence effort and timing. Set out the decision deadline at the start. Due diligence, negotiations, completion-account analysis and specialist legal or tax advice should be scoped separately where needed.
Related support
Explore connected valuation services
Real-property valuation, tax advice and legal advice require appropriately qualified advisers. Any reliance on other specialists is agreed within the engagement scope.
Practical questions
Frequently asked questions
Will the valuation equal the eventual sale price?
Not necessarily. The agreed price can reflect negotiation, financing, transaction terms and the circumstances of the parties. A valuation provides an analytical reference point; it does not guarantee a buyer or a particular outcome.
Does this replace an independent expert's report?
Not automatically. Some transactions have specific expert-report requirements. Tell us if the work is intended for security holders, a regulated transaction or a formal approval process so suitability, independence and the required engagement can be assessed.
Can you work alongside my accountant and transaction lawyer?
The initial scope can identify which information and assumptions come from each adviser and how questions will be coordinated. This helps avoid treating an unresolved legal or tax matter as an established valuation assumption.
Discuss the purpose of your valuation
Tell us the interest involved, the intended use and any deadline. We can then discuss scope and the information needed.