Business valuation specialists in valuation of private companies.

Business Valuation Ireland

Business valuation and Valuation of private companies - is one of our specialities. Private companies are often quite difficult to value. This is because shares in private companies are not as marketable as shares in quoted companies. Shares in private companies are often held by certain family shareholders. Valuers of shares sometimes can be aligned with particular interest groups, or may have other interests or commercial connections with the business itself, that make it less independent than if there were no commercial connections. Business and Technology Links Ltd. provides business valuation services that customers rate highly because our business valuations are independent:

• Independent of shareholders;
• Independent of Directors;
• Independent of Auditors and accountants;
• Independent of Solicitors; and
• Independent of family members.

The independence of our business valuations is a factor that helps interested parties to know the appropriate value. From our site you can see that we can provide a range of valuations that suit certain circumstances (e.g. buyers, sellers, probate etc.).

business valuation of private companies

Business and Technology Links Ltd. was formed in 1996. It is Ireland's only national online business valuation and trade mark specialist.

		*Reasons for Business Valuations*	*Benefits For Customers*
		There are many reasons why businesses or shares are valued. Private companies are difficult to value because they lack marketability. Some of the reasons valuations are required include: • to buy or sell shares, • to buy or sell a business, • to make sure you are getting an appropriate business value, • for succession, or to pass shareholdings on to family members, • for exits, to exit or retire shareholders or family members, • for filing papers concerning the value of a business for probate, • to resolve shareholder disputes, • to obtain investors, and • for assessment of tax - capital gains tax, inheritance tax, gift tax. Our business valuation services are superior because : 1. We can arrange to provide an independent professional business valuation service based on delivery schedules that you can select; 2. Customers can quantify our fees in advance, and beat competitors knowing they are fixed in time and/or expense; and, 3. In our view, our customers get a better competitive edge from the professional services that we provide.	Our customers benefit from : • independent busness valuation, • fast professional service, • attractive prices plus certainty in costs, • low fixed fees as distinct from time-based fees, • prompt delivery of business valuations because that is what you purchase, • good value offered to both small and large customers, • delivery schedules that you can select, • strong expertise, in our business valuation sectors, plus • quality customer service.

Customers are looking for a number of different ways of valuing private companies. The principles of business valuation are the similar from the point of view of capital gains tax, inheritance tax, estate and gift taxes. This has been up-held in several cases heard before the Courts in the United States.

The three general factors used in valuation of a closely held business are the actual interest being valued, earnings and book value. Fair market value will depend on the circumstances in each individual case. No formula can be generally applicable because of the complexity of the factors affecting business valuation. Indeed, a business valuation is in general valid as at only one particular date. Often appraisers of value can differ widely as to their opinion of fair market value of shares in a private company.

The fair market value of shares will vary as general economic conditions change, according to the degree of sentiment or confidence, optimism or pessimism, with which the investing public regards the future at the time. Uncertainty plays a significant part in whether earnings or growth rates may be maintainable in the future. The value of shares in a private company with very uncertain future prospects is highly speculative.

We aim to be Ireland's number one low cost premier business valuer and trade mark agent.

Methods of Business Valuation

Suitabilty For Circumstances

There are several methods to value a business. Some are more appropriate to certain circumstances. The most common methods of business valuation include :

• Net tangible assets (adjusted book value),
• Comparable price/PE,
• Excess earnings,
• Capitalization of earnings,
• Discounted future earnings,
• Discounted cash flow, and
• Internal rate of return.

Independence is often central to the parties that may be using a business valuation. This is especially valid for certain situations, including the following :

• valuation in shareholder disputes,

• values of shares for family members,

• business valuation for exits,

• for solicitors seeking to resolve commercial issues,

• business valuation for inheritance and succession.

Because we are not aligned with any interested party, our customers are assured that our services are independent of potential other interested parties. Over a period of time, most businesses develop relationships with their counter-parties. They may conduct other business together, socialise together, play golf together, generate recurring income such as on-going fees. In such circumstances, certain shareholders may have quite close connections with certain suppliers, and certain other shareholders may not have as close connections with the same people.

Some of these relationships can produce potential conflicts of interest, especially for a business valuation. If an interested party is getting say €15,000 per annum from your business, how committed would they be to the possibility of a sale or change in shareholders, if, as a result, this annual income might be lost? Would they be totally independent for each and every shareholder? Accordingly, it can be useful to use a fully independent party - who is focussed only on the business valuation without any ties, and the commercial issues involved.

The business valuation methods selected depend on the particular circumstances. For example :

• corporate sale or exit,

• investor negotiation,

• retirement,

• rate of return required,

• loss-making business,

• shareholder negotiations resolution,

• venture capital approaches to valuing shares,

• enhanced value for the business,

• last will and testament filing for probate, and

• valuation of minority interests.

One of the very cost effective ways to increase value is to

• invest in the brand value in the business,

• make the brand exclusive,

• register the trade mark,

• get the trade mark registered in more countries.