Before we are instructed in any valuation assignment, we will provide a reliable estimate of costs wherever this is feasible. To enable us to do this, we request a basic package of information which will usually include as a minimum:
- Three years’ annual accounts from the most-recently completed year (ideally with the detailed profit and loss account usually prepared for directors)
- A brief description of the business and its history and
- The reason for and the subject matter of the valuation
For intangible asset valuations we will also need to see:
- A copy of any financial projections
- A copy of any relevant agreements (e.g. royalty agreements)
- Details of any legal protection (trademarks and patents)
We aim to provide a fee estimate within two working days of receiving this information. Whenever possible we will agree a fixed fee which will apply unless significant unpredicted circumstances arise or critical matters of which we should have been made aware at the quotation stage later come to light. In these rare circumstances, we will discuss and agree revised terms. In some situations giving an accurate fee estimate may not be feasible, for example in negotiations with SAV. In these cases it is difficult ahead of time to predict the nature of SAV’s responses, the frequency of communication or how long it will take to reach agreement. In order to give clients control over costs, we usually agree an initial fee for the first round of negotiation with further budgets for subsequent exchanges in the light of SAV’s response. We also review progress with the client after each round, balancing the future cost of continuing negotiations with the additional benefit likely to be achievable.
We pride ourselves in only accepting instructions in situations where we believe we can add value.
HOW WE HELP
Need to settle a dispute over the value of a shareholding?
How much is your company worth?
Selling a minority shareholding. What is it worth?
Incorporating your sole trader business? What is the goodwill worth and what value will HMRC accept for tax purposes?
Making awards under a Management Incentive Plan? What is the value of the MIP shares for tax purposes?
Negotiations with HMRC at an impasse? Need a new perspective?
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A refresher on the ‘safe harbour’ provisions in the MoU relating to management equity (Part 1)
Following the introduction of the employment-related securities legislation in the Finance Act 2003, there was significant uncertainty in relation to the tax implications for management acquiring shares in venture capital (“VC”) and private equity (“PE”) backed companies.