Business Valuations

Business valuations are critically important for growth and long-term planning. They tell you what your company is worth today and in the future. Whether you're preparing to sell, seeking investment, or structuring incentives, getting an accurate, credible and defensible valuation is essential.

When do you need a Business Valuation?

There are lots of times throughout a business journey when an independent, up-to-date valuation is needed. A valuation isn’t just a number. It has strategic purpose. Here are common triggers.

  • You’re preparing to sell or exit the business
  • You’re planning to acquire or merge with another entity
  • You require HMRC clearance, or need inputs for tax, share schemes or incentive plans
  • You’re engaged in litigation, expert witness work or disputes
  • You’re raising capital and need independent backing for your valuation
  • You’re revising strategic plans, succession, or internal restructuring

The right valuation from a reputable, independent advisor, can help you make better decisions faster, with greater confidence and reduced risk.

What does a Business Valuation involve?

A business valuation is typically dominated by financial performance and health metrics, such as profitability, growth and balance sheet strength.

But a robust valuation drills down further, including quantitative analysis and contextual insight for your sector, customer behaviour and competitive positioning.

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Financial Analysis

We dissect historical performance, your revenue trends, margins, capital structure, working capital, debt, and cash flow.

Forecasting and projections

We stress-test future scenarios and incorporate risks, industry cycles and market outlooks.

Valuation methodologies

Depending on context, we might use comparable company or transaction multiples, discounted cash flow (DCF), net assets, or hybrid approaches.

Adjustment and normalisation

We strip out non-operational items, one-off costs, or owner benefits to arrive at a “clean” operating base.

Sector benchmarking and multiples

Using market data and sector-specific multiples, we ensure your valuation is realistic and aligned with your industry and competitive position.

Report and review

We will provide you with a clear, user friendly and defensible valuation report, and will communicate this with you and your stakeholders so that implications are clearly understood.

Why choose Gravitate for your valuation?

  • We provide clear, transparent pricing based on deal complexity, not just company size.
  • We provide lean and efficient processes, leveraging automation and hi-tech tools to reduce waste and deliver great work in a timely manner.
  • We apply our deep sector insight and benchmarking skills to deliver up-to-date market multiples and sector trends.
  • Our director, Martin Dean, provides experience leadership and years of valuation experience across multiple industries, sectors and methodologies.
  • We deliver credibility and defensibility, which are essential for keeping external shareholders, auditors and HMRC happy.

Our Valuation Process

Phase What we do What you’ll see
1. Discovery & scoping We clarify the purpose, scope, and level of detail required Engagement letter, data requirements
2. Data collection & due diligence We collect financials, contracts, forecasts, market data Document packs, Q&A sessions
3. Analysis & modelling If required, build forecasts, run valuation models, stress tests Model outputs, sensitivity tables
4. Draft valuation & review Internal reviews, scenario tests, iteration Draft valuation report
5. Final report & presentation Deliver a polished, defensible valuation report Report, executive summary, presentation walk-through

Business Valuation FAQs

How long does a valuation take?

Typically, 3–5 weeks from all information being received to final report. More complex valuations (e.g. multi-group or niche sector) may take longer.

Can I use a valuation I did myself internally?

You can, technically. But we strongly advise against it. External valuations carry much more weight with third parties. They are more defensible, free of bias or conflict of interest, and greatly reduce negotiation risk.

Which valuation method is best?

No one method fits all. We use a wide range of methodologies across our client base and ensure that all valuations are conducted in a way that works for each business and its stakeholders.

Will HMRC accept a Gravitate valuation?

We structure our approach very carefully to align with HMRC precedents and best practices, providing clear assumptions and market data to support conclusions. In other words, we reduce the risk of a no!!

What happens if buyer or investor disputes your valuation?

We have great confidence in our work and are happy to assist in any negotiations or disputes, including provision of sensitivity ranges and expert witness roles wherever needed.

Can a valuation help with internal incentives (e.g. share options)?

Absolutely. A valuation provides a credible benchmark for valuation of share options, equity awards and performance targets.

Which team would you like to contact?

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