Business Valuation

Business Valuation

Didn't find your answer?

I am looking to value shares in a small family run/owned business. Is the Multiples of adjusted sustainable profit the best method to use?
The valuation is so as shares can be transferred down the family for CGT and IHT purposes.
Victoria Chalmers

Replies (1)

Please login or register to join the discussion.

avatar
By malkolm
30th Jan 2008 12:23

Apply a discount and seek the advice of a tax specialist
If you are ascertaining the value of a 'closed' family business by using the earnings multiple, you should apply a discount factor to take account of the illiquidity of the shares and talso he potential adverse affect on the business if the current owner retires (i.e how important the current owner is to the business). Also, the tax implications need to be considered and an an expert in this area needs to be sought.

Thanks (0)