Valuations
Value is a core consideration for any business. Knowing the value of an asset, a company, a competitor or a target creates new business opportunities and is a key driver of wealth creation.
When do you need valuation services?
Valuation services are required at every stage of a business life cycle and our valuation team undertakes engagements for a number of different purposes, including:
- buying and selling a business
- transferring shares
- financing
- corporate restructuring
- related party transactions
- accounting and tax purposes
- dispute resolution
- litigation support
Our valuation team
- includes dedicated valuation professionals
- has experience in undertaking a wide-range of valuation assignments
- provides concise, independent and robust valuation opinions
We have broad experience in
- dealing with complex valuation issues
- providing expert witness statements for litigation purposes
- share valuations in the capacity as an independent expert
- valuing private companies and minority shareholdings
Our capabilities have been recognised at the highest level with the appointment in 2010 of Smith & Williamson Director Ian Burns as Independent Valuer of the Dunfermline Building Society on behalf of HM Treasury.
Working with our clients
We take pride in our client care and take the time to understand our client’s needs. In particular we:
- respond quickly to meet demanding deadlines
- ensure you receive the best possible advice by actively involving senior team members in every engagement
You can find out more about our business valuations, share options and valuations of intangible assets below
Business valuations
We specialise in valuing private businesses for acquisition, divestment and share transfer purposes.
Our established valuation approach incorporates the critical drivers of value including:
- market conditions
- industry dynamics
- the competitive environment
- key personnel
- minority holdings
- share transfer restrictions
We work closely with each client to provide a bespoke service to meet your needs and your budget.
Valuations of intangible assets
By their very nature, intangible assets can be difficult to value. International accounting standards require a very wide range of intangible assets of an acquiree to be recognised in the consolidated financial statements of the acquirer.
There are particular rules and requirements which govern how such assets are recognised and measured. Valuation is critical due to the potentially significant impact it can have on the group’s balance sheet and future income statements.
Why choose Smith & Williamson?
- experienced team in conducting asset valuations
- undertaken valuations across a wide range of businesses and industries
- knowledge of applying the accounting standards to meet clients’ and auditors’ needs
Share options
The value of all share options granted – including by private companies – must be expensed through the profit and loss account. The disclosure requirements of the financial reporting standard are complex and auditors are prohibited from valuing options for their clients.
Our valuation tools
Our valuations team has developed a suite of valuation tools specifically for use with UK share option schemes. These include:
- Black-Scholes
- Binomial lattice
- Monte Carlo models
Our models cater for all variables affecting option value – including early exercise patterns, performance criteria, and relevant share restrictions – and can be applied equally to public and private companies.
We can help clients to:
- value their employee share options
- ascertain the required accounting treatment in accordance with current accounting standards
- deal with the detailed disclosure requirements of IFRS 2/FRS 20
- design options schemes which meet both financial reporting objectives and also secure optimal tax treatment for the company and the individuals concerned
Contact us
For further details on any of our valuation services, please contact:
email: Ian Burns
tel: 020 7181 4225
