FAQ
Business valuation FAQ
The questions UK SME owners ask us most often, with straight answers.
How is a UK business actually valued?
Professional valuers triangulate between three methods: an EBITDA multiple (most common for profitable trading businesses), net asset value (for asset-heavy or loss-making businesses), and discounted cash flow (where credible forecasts exist). The earnings multiple is the primary lens for most UK SMEs.
What EBITDA multiple should I expect for my UK SME?
As a broad guide: owner-managed service and retail businesses typically trade at 2x–4x adjusted EBITDA; established B2B services and specialist trades at 4x–6x; recurring-revenue software and scarce-skill businesses at 6x–10x or higher. The actual figure depends on growth, customer concentration, owner dependence and buyer type.
How much does a professional business valuation cost?
The Business Valuers charges a fixed fee of typically £495 for a bespoke written valuation. There are no commissions, no success fees, and no incentive to push the number in either direction.
How long does a valuation take?
We deliver the written valuation within 72 hours of receiving your financial information (usually the last three years of accounts and current management figures).
Are free online business valuation calculators accurate?
No. They apply a generic multiple to headline profit and ignore the normalisation adjustments, sector data and risk factors that drive a real number. They are a rough sense check at best — not something to negotiate, file or rely on.
Why do brokers offer free valuations?
Because the valuation is a sales tool, not an independent opinion. The figure's job is to win the instruction — either flattering you into signing or pitching low to turn a quick deal. An independent valuation has no stake in the outcome.
What's the difference between a market valuation and an HMRC valuation?
A market valuation aims at the best realistic buyer in an open sale. An HMRC valuation uses the statutory 'hypothetical purchaser' basis with case-law adjustments — including discounts for minority shareholdings — and typically produces a lower figure.
Do I need a valuation for probate?
Yes. HMRC requires a market value of any business interest at the date of death for inheritance tax purposes. The valuation needs to be defensible and follow the statutory basis — a broker's number is not appropriate.
Can the same business have more than one value?
Yes — and this surprises people. The standard of value changes with the purpose (sale, tax, probate, divorce, dispute, share scheme) and with the size of the holding (a minority stake is worth less per share than a controlling one). 'What is it worth?' is always really 'worth to whom, and for what?'
What information do you need to value my business?
Typically the last three years of statutory accounts, the most recent management accounts, a short conversation about owner adjustments, customer concentration and any one-off items, and a sense of the purpose of the valuation. We send a checklist when you get in touch.
Do you cover the whole UK?
Yes. We work with SME owners across England, Scotland, Wales and Northern Ireland. The work is done remotely; we don't need to visit.
What size of business do you value?
We focus on UK SMEs with turnover between roughly £500k and £20m. Outside that range we'll tell you honestly and, where helpful, point you towards a better-suited firm.
More detail in our guides on how to value a UK business and how much your business is worth.
Want a real figure for your business?
Independent, written valuations delivered in 72 hours for a fixed fee, typically £495.