How much does a business valuation cost in the UK?
Ask what a business valuation costs in the UK and you will hear anything from "free" to "£25,000". Both answers are true, and both are misleading without context. This guide sets out what the market actually charges, what drives the differences, and what you should expect to receive for your money.
The short answer
For a UK SME, an independent written valuation report typically costs £2,000 to £10,000+ from an accountancy or corporate finance firm. Fixed-fee specialists charge considerably less: our own independent SME valuation reports are a fixed fee, typically £495, delivered within 72 hours. Brokers will often value your business for free — but that figure is part of a sales pitch, not an independent opinion, and it is worth understanding why.
What the market charges
Free broker valuations. Most business transfer agents and M&A brokers offer a free valuation early in the conversation. The valuation costs nothing because it is a marketing tool: the broker is pricing a mandate they hope to win. That creates a well-known incentive to flatter the figure — a higher number wins the instruction, and the price can always be "adjusted to market feedback" later. A free valuation is fine for curiosity. It is not a document you can put in front of HMRC, a court, a co-shareholder or a serious buyer.
Accountancy firm reports: £2,000–£10,000+. A formal written valuation from an accountancy or corporate finance practice for a single trading company commonly starts around £2,500 plus VAT and rises with complexity. Multi-entity groups, forensic work and expert witness reports for litigation run well beyond £10,000, and matrimonial forensic reports can reach £25,000 where separate experts are involved. Turnaround is typically two to six weeks.
Fixed-fee independent specialists. A newer part of the market, focused on doing one thing repeatedly and efficiently. Our reports are typically £495, fixed and agreed before any work begins, delivered within 72 hours of receiving your figures. The report is bespoke — built by an experienced valuer from your accounts, not generated by a questionnaire — and sets out the basis of valuation so that anyone who later challenges the figure can see exactly how it was reached.
Online calculators: free to ~£100. Useful for a rough orientation, nothing more. A calculator cannot normalise your earnings, judge your sector multiple against real transactions, or defend its output when challenged — and every party that matters (HMRC, courts, buyers) knows it.
What drives the cost
Four things move the fee more than anything else:
Complexity of the business. Groups with multiple entities, significant property assets, intercompany balances or unusual structures take longer to unpick than a single trading company.
Purpose of the valuation. A report for a shareholder dispute or court proceedings must be written to withstand adversarial challenge, which demands more supporting evidence than a valuation for your own sale planning. Expert witness work carries additional duties and cost.
Who signs it. Big-firm letterhead costs money. It is sometimes worth paying for — but what actually gives a report standing is the independence of the valuer and the rigour of the workings, not the logo at the top.
Speed. Some firms charge a premium for fast-track delivery. We deliver in 72 hours as standard, because the moments that call for a valuation — an approach from a buyer, an HMRC deadline, a dispute — rarely leave room to wait.
Why "free" usually costs the most
The most expensive valuation is the one that misleads you. An inflated broker valuation can put your business on the market at a price it will never achieve, burning months of exposure and signalling staleness to buyers. An accountant's figure produced without transaction evidence can hand HMRC an easy challenge on an EMI scheme or a probate submission. In a dispute, a partisan number simply produces a second valuation and a bigger legal bill.
An independent valuation is only as useful as it is impartial. The moment the person producing the number benefits from it being higher or lower, the figure loses its weight in the rooms where it counts. That is the real test to apply to any fee quote: what does this valuer gain from the number landing high or low? The right answer is nothing.
What a proper valuation report should include
Whatever you pay, the report should contain, as a minimum: normalised earnings with each adjustment itemised; the basis of valuation and why it suits the purpose; the methods applied — for a trading SME, typically an earnings multiple, a net asset valuation and a discounted cash flow, triangulated rather than used in isolation; the comparable transaction evidence behind the multiple; and a clearly stated figure or range. If a report cannot show its workings, it will not survive scrutiny — and scrutiny is the entire point of paying for one.
Common questions
How much does a small business valuation cost?
For UK SMEs with turnovers between £500,000 and £20 million, expect £2,000–£10,000+ from an accountancy firm, or a fixed £495 from an independent fixed-fee specialist such as ourselves. Free broker valuations exist but are not independent.
Is a business valuation worth paying for?
If the figure will be relied on by anyone — HMRC, a court, a buyer, a co-shareholder, a divorcing spouse — yes. An unsupported number is challenged, and challenges cost far more than the report.
How long does a business valuation take?
Accountancy firms typically take two to six weeks. We deliver a bespoke report within 72 hours of receiving your figures.
What information do I need to provide?
Typically the last three years of statutory accounts plus your latest management figures, and a short briefing on the business.
Does HMRC accept independent valuations?
HMRC does not "pre-approve" most valuations (EMI schemes aside, where advance agreement is available), but a valuation prepared on a recognised basis with evidence behind it is far less likely to be challenged — and far easier to defend if it is.
Can my accountant value my business instead?
They can, and many do it well. But your accountant is not independent of your business, which matters when the figure faces an opposing party. Many of the accountants we work alongside refer valuation work to us for exactly that reason.
The Business Valuers provides independent, fixed-fee business valuations for UK SMEs — typically £495, delivered within 72 hours. We do not sell businesses, so the figure carries no incentive to inflate or deflate.
For a fixed quote on your situation, get in touch.