Ownership and shareholder decisions
Understand the interest being valued, rights, intended use and decision context before discussing a number. A whole-company value is not automatically the value of a minority shareholding.
Independent Business Valuation | Consult EFC
A number you can explain, assumptions you can challenge and a report built around the decision you need to make.
Consult EFC helps owners, shareholders and management teams understand business value for commercial decisions. Work directly with Kishen Patel, an ICAEW Chartered Accountant, with the purpose, report scope and fixed fee agreed before work starts.
The valuation brief
An independent business valuation is an assessment of a specified business or ownership interest at a defined date, using a stated basis, relevant evidence and professional judgement. It is more than an online multiple: the report explains the reasoning, assumptions, range and limitations.
A decision worth understanding
Understand the interest being valued, rights, intended use and decision context before discussing a number. A whole-company value is not automatically the value of a minority shareholding.
Develop a supported starting point for discussions. Distinguish an independent valuation from a buyer’s strategic price, a broker’s marketing estimate or the commercial terms of an actual offer.
Assess what drives value and where uncertainty sits. Use the findings to prioritise financial information, cash conversion, management depth or other evidence, rather than assume every improvement adds a fixed premium.
The work behind the conclusion
We start with the business model, valuation purpose, date and interest. Recent accounts and management information establish the financial starting point; contracts, forecasts, customer exposure and commitments help explain its durability.
Maintainable earnings may require a reasoned adjustment bridge. A reported cost is not an add-back simply because the owner would prefer it removed. Replacement management costs, recurring expenses and the evidence behind unusual items matter.
We select relevant methods, investigate material differences and explain the range. Methods are not averaged mechanically, and a low or high number is not selected to support a preferred outcome.
Explore the detail
Explore an illustrative earnings-based calculation and the enterprise-to-equity bridge. The multiple is an assumption you enter, not a current market benchmark or a valuation recommendation.
Enterprise value = entered earnings × assumed multiple. Equity illustration = enterprise value + cash − debt + the entered other adjustment. Before fees, tax, share-class allocation or transaction terms. This is an illustration, not a valuation.
Each cell changes the entered earnings by up to 10% and the assumed multiple by up to 20%. These are chosen sensitivities, not market ranges. Equity adjustments are excluded from the table.
| Assumed multiple | 10% lower base | Entered base | 10% higher base |
|---|
Independence and intended use
Independence involves more than being external to the business. We consider relationships, potential conflicts, the purpose of the work and whether the engagement can be accepted on an appropriate basis. The report identifies its intended use and users.
Commercial advice, transaction negotiation, expert evidence, tax work and statutory reporting are different briefs. A report prepared for one purpose should not simply be reused for another. We confirm whether specialist legal, tax, accounting or other input is required.
Where you need a tax-specific share valuation, use our HMRC and EMI valuation service. For an active owner-led sale process, explore business sale advisory. The responsibilities and independence considerations are agreed separately.
Useful after the report
See the material drivers, selected assumptions and sensitivities. Understand why a conclusion can change when the evidence or purpose changes.
Where relevant, understand cash, debt, debt-like items, working capital and non-operating assets. Then consider the actual interest and rights being valued.
Walk through the findings, limitations and decisions. A valuation can inform negotiations or planning; it cannot guarantee a sale, funding or acceptance by another party.
Methodology
Relate an appropriate performance measure to relevant evidence. Normalisation, comparable rights, scale, risk and transaction terms need a reasoned assessment.
Assess the timing and risk of future cash flows, reinvestment and funding needs. Forecasts, terminal assumptions and the discount basis can materially affect the answer.
Consider relevant assets and liabilities on the agreed basis. Book amounts are not automatically economic values, and specialist property or asset input may be required.
No single method is right for every business. Share-class allocation, minority interests, tax bases and IP rights can require further analysis rather than a mechanical percentage or discount.
Your deliverable
01 / Brief
The subject, rights or interest, intended use and users are identified. A report for one purpose should not be assumed suitable for another.
02 / Evidence
The financial records, relevant documents and other evidence used are identified, with material limitations and assumptions made clear.
03 / Analysis
The selected approach and important assumptions are explained. The work should show the relationship between the evidence and the conclusion.
04 / Conclusion
The agreed report or other deliverable sets out the result, limitations and intended use. A walkthrough helps you understand the findings and the next questions.
The exact deliverable is agreed for your brief. Specialist advice, additional reliance, submissions, negotiations and follow-up work are included only where expressly scoped.
An agreed working process
Agree the business, interest or asset, purpose, date, intended use, deliverables, responsibilities, fixed fee and VAT treatment.
Assess the available financial and commercial evidence and identify missing information or specialist input.
Apply the agreed methods, investigate material assumptions and consider relevant sensitivities or allocation questions.
Provide the agreed deliverable and discussion, with limitations and next steps made clear.
UK-wide support
We work remotely with UK businesses and their advisers, with meeting arrangements agreed for the brief. Explore support for London, Manchester and Surrey owners, or start with the purpose of your valuation.
Read further
From the journal
Understand the detail, then discuss the scope needed for your business.
From the journal
Understand the detail, then discuss the scope needed for your business.
Your questions
We agree a fixed fee for a defined scope after understanding the business, purpose, information and complexity. The proposal explains deliverables, VAT treatment, timing and what would require additional work.
The agreed report or valuation deliverable explains the purpose, date, basis, interest, methods, information, assumptions, conclusion and limitations. We also provide the agreed discussion or walkthrough.
No. A valuation assesses value on a stated basis at a date. A negotiated price can reflect buyer-specific synergies, competition, funding, warranties, payment structure and other deal terms.
Yes, subject to the brief and available documents. The share class, voting, dividend, transfer and other rights must be reviewed. A percentage of whole-company value is not automatically the correct answer.
Different roles can create conflicts or change the purpose of the work. We consider the relationship and intended reliance before accepting a brief and make any separate transaction role explicit.
Acceptance cannot be guaranteed. Each audience has its own requirements, powers and review process. Tell us the intended use before work starts so the appropriate scope and specialist input can be considered.
We agree timing after reviewing scope and information readiness. Complex rights, incomplete records, additional analysis or third-party responses can affect the plan.
No. It shows a simplified relationship between entered earnings, an assumed multiple and selected equity adjustments. It does not select a suitable method, assess evidence or value share rights.
Work directly with the adviser
Tell us the decision, the interest or asset and any important date. We will help define the work.
Kishen Patel leads Consult EFC engagements. He is an ICAEW Chartered Accountant with a background in Big Four audit, investment banking and corporate advisory. Consult EFC has advised 100+ businesses and remains sector agnostic.
Our fixed-fee proposal explains scope, intended use, responsibilities, timing and VAT treatment before work starts. A free introductory conversation does not commit you to an engagement.
Not sure what information you need? Try the free valuation readiness scorecard to organise your starting questions. It is a planning aid, not a valuation.