Guide
How the premises lease affects what a business is worth
How the remaining lease term, renewal options, rent reviews, assignment consent, make-good and relocation or demolition clauses affect a business valuation.
Topic
Buying, selling and shareholder buyouts
Preparing a business for sale or purchase, due diligence, minority interests and partner or shareholder exits.
Written for: Owners preparing for a transaction, buyers, and the accountants and lawyers advising them.
Valuo Insights
13 resources
Guide
Is a 25% shareholding worth 25% of the company?
Why a minority shareholding is not automatically worth its percentage of equity value, and how rights, agreements, control and liquidity shape the answer.
Guide
Is stock included in a business valuation or added on top?
Whether stock is inside a business valuation or added on top, how plus stock at value sales work, and how slow and obsolete stock is dealt with at completion.
Guide
Preparing for a buyer's due diligence
What a buyer and their accountant usually ask for in due diligence, why they ask, and what a seller should have ready before the business goes to market.
Guide
Preparing for a shareholder or partner buyout
What both sides should settle before a shareholder or partner buyout: the agreement, valuation date and basis, the valuer, documents, loans, timing and funding.
Guide
Shareholders agreement valuation clauses: a drafting checklist
A checklist for lawyers drafting the valuation clause in a shareholders agreement: standard of value, date, discounts, loans, valuer appointment, process, costs and deadlock.
Guide
Business broker appraisal vs independent valuation: what's the difference?
A broker appraisal suggests a price to take to market. An independent valuation is a reasoned opinion of value from someone with no stake in the sale.
Guide
Do I need a business valuation for a bank loan?
Some lenders want a business valuation for a loan and some do not. Ask your lender first: many set their own rules and may use their own panel valuer.
Guide
How do I know what a business is worth before I buy it?
Before buying a business, check the seller's profit and add-backs against records, test the risks, and get an independent valuation to support your offer.
Guide
How do I value my business before selling it?
Value your business before you list it: use a few years of financials, adjust for one-off and owner costs, and get an independent report a buyer can read.
Guide
How do I value my business for retirement or succession?
Value your business years before you retire, choose between family, staff or an outside sale, and review the value regularly as you prepare to hand over.
Guide
A shareholder loan is separate from the shares
Understand how loans to or from shareholders can affect a business valuation and why share value, loan balances and settlement proceeds need separate schedules.
Guide
Value, asking price and sale price are not interchangeable
Compare a business valuation, a seller’s asking price and an agreed sale price. Understand how earnouts, timing, assets and buyer circumstances change the comparison.
From the specialist practices
Oliver Group is the Valuo practice for restructures, tax and CGT, and shareholder buyouts. These articles open on the practice's own site.
Tools
Work it through
Tool
Capitalised earnings sensitivity table
See how a range of capitalisation multiples, which you supply, changes an earnings-based value, and the capitalisation rate each multiple implies.
Tool
Earnings normalisation worksheet
Adjust reported profit for owner remuneration, personal expenses, related-party rent and genuinely non-recurring items, over up to three years. Download it as an Excel workbook.
Tool
Enterprise value to equity value calculator
Bridge from enterprise value to equity value with surplus cash, debt, debt-like items and a working capital adjustment, with every formula shown.