Selling a Business: Valuation

If you are an owner management team, an investor or a corporate entity and you are contemplating selling a business, then you are well aware that you are not going to sell this asset twice, so the key to the transaction is to find the right buyer and to get the best price (with a view to minimising the tax payable in the process).

The sale of shares in a family held or any private company usually constitutes the single most important commercial transaction in the owners’ lives.  Shareholders thinking of selling their shares should plan as early as possible for that event both in terms of “dressing” the company for sale and, as importantly, in terms of their own exit in a tax-efficient  manner.

Blue Sky is ideally placed to advise and guide you through the best approach for valuing your business, as there are several different models used.  We can assess if your price expectations are realistic based on factors such as the company’s ability to generate sales, past and future, cash flow, profits, company assets, type of business and industry sector.

Blue Sky has helped with the sale of a great many privately owned companies and businesses.  With a blend of commercial, valuation and tax planning skills, we can provide extensive experience and expert advice in any situation.  Steps in the sales process on which we can advise include:-

  • An objective valuation of the shares to be sold
  • Tax mitigation planning for shareholders
  • Preparation of sales documentation
  • Identification and evaluation of proposed buyers
  • Negotiation with the prospective buyers
  • Liaison with lawyers to validate the structure of the deal