In many SMEs, the most valuable assets never appear on the balance sheet. Intellectual capital — the knowledge, processes, experience, and relationships that hold the business together — is often the true driver of future earnings. Yet most owners underestimate its importance until they prepare for an exit, valuation, or EOT transition. Buyers, however, scrutinise it closely. Understanding how to assess and present intellectual capital is essential for establishing a credible

Most business owners overestimate the value of their company long before they decide to sell. When the time comes to take the business to market, reality can be disappointing. The truth is simple. A business is only worth what a buyer is prepared to pay, and avoidable mistakes often undermine that value long before negotiations begin. At BusinessValuation.co.uk we regularly see businesses lose significant value because owners have not prepared properly or have misunderstood

The reality of valuation gaps Many business owners are surprised when a buyer’s offer comes in lower than expected. It is a common friction point in SME transactions and one that can derail a deal if not handled with clarity and preparation. A valuation gap is rarely about one side being right or wrong. More often, it reflects two very different perspectives on risk, return, and future performance. Buyers assess value cautiously. Sellers tend to look at potential. Bridging th

Seasonality is a reality for many businesses. Some experience strong trading periods followed by quieter quarters. Others rely heavily on specific events, annual cycles, or predictable peaks in customer demand. When it comes to business valuation, seasonality does not reduce value on its own, but it must be understood and presented correctly. A buyer wants to know how predictable your revenue is, how stable your cash flow remains throughout the year, and whether the peaks and

An independent business valuation is one of the most important steps a business owner can take before considering an exit, sale, or succession plan. Whether you’re exploring a sale to a trade buyer, planning an Employee Ownership Trust (EOT), or simply want to understand your company’s current market worth, preparation is key. Below we outline how to prepare effectively — and ensure your valuation reflects the true strength and future potential of your business. 1. Understand