Business Valuation is it worth it?

S

sigita

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Hi Guys. I am doing a research on Business Valuation in UK. I have tried to contact few people to answer some of my queries, but it’s not easy and of course, why would they… So here it goes. Perhaps some of you are from UK or have ever worked there and could advice me on some of the matters.
>I am interested in knowing more about the typical characteristics of the companies that seek the services of a business valuer.
>In you opinion, how much is annual spending on business valuation consultants in the UK?
>Do you feel that the industry needs to be regulated?
>And finally do you think that this business field is dominated by large companies?
Please add any other info which you think may be useful for me. Thanks in advance!
 
I work in business valuation in the U.S. and typically valuations are done by accounting firms (Big Four and regional), boutique valuation shops, and sole proprietors. Some of the valuation firms are sweat shops that use junior analysts or some firms outsource to India. There are four valuation designations, ASA, ABV(CPA), IBA, and CVA. It seems about half of the field are CFA’s and the other half CPA’s. Pricing varies from about $3-4K to $20K+, larger firms get the bigger projects. The industry is fractured in the U.S. (four designations), and should be regulated because there is a wide variance in the analysis and quality of valuations. The three main areas of valuation practice are fair value reporting (ASC-820), option expense (409A), and private firm valuation (RR 59-60A).
 
Hi Calvol, thanks for you reply. I would also like to know, for what purposes the companies use your services. Is it Company sales mostly or annual growth planning, etc? Also the characteristics of the companies, small companies, large, limited, partnerships etc.. thanks
 
> Please add any other info which you think may be useful for me.
sure!
“doing a research” -> “doing research”
“some of you are from UK” -> “some of you are from the UK”
“and could advice me” -> “and could advise me”
“typical characteristics of the companies” -> “typical characteristics of companies”
“seek the services of a business valuer” -> “seek services of a business valuer”/”seek the service of a business valuer
“In you opinion” -> “In your opinion”
“what purposes the companies” -> “what purpose the companies”/”what purposes the company”
>Thanks in advance!
you’re welcome
 
jeez, I hope you have some more exciting hobbies than that…
Thank you for a lesson!
 
Sigita,
Basically valuations fall into these categories:
Private firms being bought/sold, stock gifts, or estate transactions. These fall under IRS reg RR 59-60A, which prescribes DCF, Market, Cost methods using fair market value as the standard of value. For these valuations, a DLOM is applied, and is one of the most controversial areas of valuation. ESOP valuation falls into this category as well.
Stock option expense, for pre-IPO firms under IRS reg IRC-409A, which calls for valuation of common stock for stock option expense. This arose from back-dating scandals of option exercise price and FASB efforts to recognise stock option expense. The option pricing model (OPM) is used to determine common stock price using inputs from preferred stock price to setup breakpoints. Standard of value is FMV and DLOM applied.
Fair value reporting, for VC firms with equity portfolios. This falls under FASB reg (ASC-820, formerly FAS 157) Here the standard of value is “fair value”, and DLOM is not applied if intent to hold (again controversial).
M&A valuation is less rigorous than the above methods. Usually buy-side uses EBITDA mults, and sell-side uses DCF based on management forecasts.
Also, take a look at the thread “CFA vs CPA for Business Valuations”(now on page 1)…
 
You must log in or register to reply here.
Back
Top