Valuations

Every valuation begins with a clear understanding of the purpose of the exercise and the appropriate basis of value, for example, market value, fair value or equitable value. We take careful instruction at the outset to ensure the valuation is prepared on the correct basis for your specific circumstances and requirements.

Our reports then set out the appropriate valuation methodologies that may be used to determine that value. We assess the available information, relevant market data and accepted sector practices to identify and apply the most suitable approach.

We undertake a detailed analysis of the business and its underlying financial and operational performance, drawing on all relevant factual information available. We also consider developments and general trends in the industry sector. This forms the foundation of our valuation work.

Your final report provides a clear, well-supported and fully documented opinion of value, presented in a robust format designed to meet the expectations of regulators, auditors, tax authorities or the courts.

At the outset of every engagement, our valuation specialists issue a tailored information request designed to gather a comprehensive understanding of the business. This typically includes (but is not limited to) statutory financial statements, management accounts, and forward-looking budgets and forecasts.

However, robust valuation goes beyond financial data alone. There is no substitute for insight from those closest to the business. As part of our process, we engage directly with owners, management and key stakeholders to develop a deeper understanding of the business, including its strengths, weaknesses, and future prospects.

We consider a broad range of qualitative and quantitative factors, such as:

• Dependencies on key customers, suppliers or personnel
• The competitive environment and market positioning
• The regulatory landscape
• Other internal and external factors that may influence value

This combination of detailed financial analysis and informed commercial insight allows us to form a well-rounded, evidence-based view of value that stands up to scrutiny.

A valuation will typically take three to four weeks from receipt of the initial information required. However, timelines can vary depending on the complexity of the engagement and the volume and quality of information available.

At the outset, we work closely with management teams to agree a clear and realistic timetable, providing an estimate tailored to the specific requirements of each assignment.

The cost of a valuation report varies depending on the complexity, scope, and purpose of the engagement. As a guide, fees are typically influenced by the following factors:

Key cost drivers:

• Complexity of the business
  Larger or more complex businesses, group structures, or those operating in multiple jurisdictions will require more detailed analysis.
• Purpose of the valuation
  Valuations for litigation or dispute resolution (e.g. shareholder disputes, divorce, or expert witness work) are generally more involved than advisory valuations.
• Availability and quality of information
  Well-prepared and complete financial information can reduce time and cost, whereas incomplete or unreliable data may require additional investigation.
• Valuation methodology required
  More sophisticated approaches (e.g. discounted cash flow modelling) or multiple methodologies will increase the level of work.
• Level of reporting
  A high-level advisory report will cost less than a detailed expert report designed to comply with court or regulatory requirements.

Please get in touch for an estimate based on your specific requirements.

Yes, our forensic accounting valuation experts regularly prepare independent expert witness reports in accordance with the Civil Procedure Rules (“CPR”) and Family Procedure Rules (“FPR”) for use in legal proceedings.

Our reports are prepared to meet the required legal standards of independence, objectivity and clarity, and are designed to withstand scrutiny in court.

A forensic valuation is prepared with the specific intention of withstanding legal scrutiny, including use in court proceedings where required. By contrast, valuations prepared for other purposes (such as tax, financial reporting or commercial decision-making) are not required to comply with these legal procedural rules, although they are still delivered to a high standard of technical rigour and robustness.
Our forensic accounting valuation specialists produce reports that are fully compliant with the requirements of the Civil Procedure Rules (“CPR”) or Family Procedure Rules (“FPR”), ensuring they meet the necessary standards of independence, objectivity and transparency.

Whilst the underlying business and its financial performance remain the same, the value concluded can differ depending on the purpose of the valuation and the assumptions that are appropriate in the circumstances.

For example, a valuation prepared for a shareholder dispute may be based on different assumptions from a valuation prepared for a tax matter, financial reporting requirement, employee share scheme, or a commercial transaction.  Factors such as the basis of value, the valuation methodology adopted, the level of control associated with the shareholding, marketability considerations, and the relevant legal or accounting framework can all influence the conclusion.

That said, a valuation should always be grounded in the same fundamental principles.  An experienced valuer will assess the specific purpose of the engagement and apply a methodology that is appropriate, reasonable, and consistent with the relevant professional, legal, tax, or accounting requirements.

At Hazlewoods, we regularly prepare valuations for a wide range of purposes, including transactions, shareholder disputes, tax planning and compliance, financial reporting, employee share schemes, and litigation support.  We ensure that our approach is tailored to the specific circumstances and objectives of each engagement.