Business valuation specialists
Tel: 01425 402402
Email: Click here
printPrint page
How to value shares in a private company
Do you need to know how to value shares in a private company?

Most sectors of business have a formula for valuing the business based on a multiple of net profits. R A Valuation Services Limited can provide the multiple for your sector, and calculate a share price valuation based on the value of goodwill plus the (other) net assets of the balance sheet.

It may be a certain multiple of adjusted net profit, in which case the valuation and share price calculation can be relatively simple. If the business is successful and demonstrates a growing trading trend, and/or it has a unique system that sets it apart from the competition, it can increase the multiple.

Other methodologies for valuing shares in private company include industry specific valuations, asset valuations and discounted cash flow. Click here for more information on valuation methodologies.

Bear in mind that the market value (or even selling price) is what someone is willing to pay. Perhaps uniquely, R A Valuation Services Limited holds and updates a database of previously achieved open market sale prices to verify and justify any approach to valuation taken.

Generic Business Valuations
Can R A value any type of Business?
The valuation process can be applied to all types of small business provided that the business has a suitable trading history .... more >>

How does R A value a Business?
The valuation process is concerned, primarily, with an assessment of a justifiable value for goodwill .... more >>

What is R A Valuation Services Ltd?
Established in 1991, the focus was originally on opticians and goldsmiths .... more >>


Reasons for a valuation
A Business Valuation supported by a professionally prepared valuation report from an independent and authoritative source is an essential aid to:
  • Management or internal buyout
  • Business sale / Business purchase
  • Partnership and shareholder change
  • Litigation e.g. legal separation
  • Incorporation
  • Tax agreement
  • Borrowing and funding
  • Business development
  • Benchmark / Performance indicators for business
  • Report is definitive & realistic in the market place
R A Valuation Services Ltd
Recognised Authority
Valuation reports produced by R A Valuation Services Limited are acknowledged to be the authoritative form of business valuation for many small and micro business sectors and are accepted by:
  • HMRC
  • Bank managers
  • Other lenders & providers of finance
  • Accountants
  • Tax specialists
And an R A Valuation Services' valuation report is tailor-made for their purposes. Indeed, such is their authority that an R A Valuation Services' valuation report is normally insisted upon in support of negotiations.

The report itself is detailed and informative, professionally presented and smartly bound.
Accredited by the AOP
Accredited by the AOP

Registered in England No: 2662718
Registered Office: Elizabeth House, Unit 13 Fordingbridge Business Park,
Ashford Road, Fordingbridge, Hampshire SP6 1BZ
© R A Valuation Services Ltd 2007
Website and its contents copyright R A Valuation Services Ltd