Revised FRS 102: impact on financial metrics and business implications
8 mins
We can provide business valuation services whatever your position. Whether you need to establish a share option scheme, are dealing with a shareholder dispute or marketing a business for sale.
What we offer
The valuation of private companies can be a subjective task; however, our valuations draw on the technical strength of colleagues across the firm which utilises our depth of experience and helps to provide you with a balanced valuation.
In the course of acquisition negotiations, it is often the case that you will need to assess valuations prepared by other professional advisers. We can provide a simple overview or a comprehensive critique of other valuation models, to ensure that you will only receive the best practice methods for your valuations.
In preparing your valuations, our team is experienced in applying various models to businesses to give a reasonable valuation. These techniques include the asset, earnings, and discounted cash flow models.
If your business is an individual company, an entire group, or individual departments and sectors, we can provide you with a valuation and then arrange a report that includes a full explanation of how the valuations are calculated.
Valuations in dispute situations need to be handled carefully. We can act as an expert witness for the claimant or respondent and can review valuations prepared by other parties. We can also be instructed as the jointly appointed expert witness in cases where we provide a totally independent and objective valuation.
Frequently asked questions
- Why do I need a business valuation service?
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Business valuations are essential for sales, acquisitions, tax planning, shareholder disputes, or investment decisions.
- What methods are used to value a business?
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Common methods include Earnings Before Interest, Taxes, Depreciation, and Amortisation (‘EBITDA’) multiples, discounted cash flow (DCF), and asset-based approaches.
- What affects the value of my business?
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Key factors include profitability, growth potential, market conditions, and perceived risk.
- Can I value my business myself?
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While you can estimate value, professional valuations provide greater accuracy, credibility, and defensibility.
- What is goodwill in a valuation?
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Goodwill represents the intangible value of a business, such as brand reputation, customer relationships, and intellectual property.
- How long does a company valuation take?
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Most valuations take two to four weeks, depending on the complexity of the business, purpose of the valuation and availability of information.
- Is a business valuation legally binding?
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Valuations are not legally binding but are often used in legal, financial, or tax negotiations.
- What documents are needed in a company valuation?
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We typically require financial statements, management accounts, forecasts, operational data, and relevant market or industry information.
- How does Mercer & Hole conduct valuations?
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We apply detailed financial analysis, industry benchmarks, and expert judgment to deliver robust, defensible valuations.
- Can you value early-stage or loss-making businesses?
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Yes. We apply appropriate methodologies and consider qualitative factors to value businesses at all stages of development, including early stage or loss-making businesses.
- What is the difference between equity value and enterprise value?
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Enterprise value reflects the total value of the business’ operations, while equity value represents the value attributable to shareholders.
- Does Mercer & Hole offer valuations for employee share option schemes?
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Yes. We assist with valuations for Enterprise Management Incentive schemes, growth shares, and other employee incentive plans.
Business Services Specialists
Dominic Dumville >
Restructuring and Insolvency Partner
Tania Phillips >
Director, Head of Transaction Services
Kevin Paget >
Director, Head of Deal Advisory
Jacqui Lawman >
Tax Partner
Mark Baxter >
Tax Partner
Why work with us?
Business stakeholders benefit from our experience and ability to provide practical solutions as they grow, develop, or require support through operational turnaround.
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Industry RecognitionRecognised in the AccountancyAge Top 50+50 Survey as a top 50 accountancy firm
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Sector KnowledgeKnowledge and experience which we can apply to your business
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Cross-Team ExpertiseJoined-up advice across all services, including Restructuring, Corporate Finance, and Corporate and Business Tax
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AccessibilityFour offices in London, St Albans, Rickmansworth, and Milton Keynes
