Debt often gets a bad reputation in business circles — especially when it comes to valuation. But while excessive or poorly structured debt can raise red flags, the presence of debt in a business doesn’t automatically reduce its value. In fact, in many cases, debt can be a positive tool that supports growth, improves cash flow, and even enhances buyer confidence. The key is understanding how debt is viewed during a valuation — and how to manage it effectively ahead of a poten

Why Valuation Audits Matter Whether you’re selling your business, raising investment, or planning a transition, a professional valuation may be audited by external parties — such as investors, acquirers, HMRC, or internal stakeholders. Being well prepared for a valuation audit not only helps you avoid delays or scrutiny, but also ensures you maintain credibility and maximise your business’s perceived value. 1. Organise Your Financial Information Auditors will want to see: Thr

When assessing the value of a business, tangible assets like property, stock, and equipment are easy to measure. But in today’s economy, much of a company’s true value lies in what you can’t see on the balance sheet. At BusinessValuation.co.uk, we help business owners and shareholders understand the full picture—including the often-overlooked power of intangible assets. What Are Intangible Assets? Intangible assets are non-physical assets that contribute to a company’s earnin

In the realm of business valuation, particularly for UK SMEs, customer concentration is a pivotal factor that can significantly influence a company's market value. High reliance on a limited number of clients introduces risks that potential buyers and investors meticulously assess. Understanding Customer Concentration Customer concentration refers to the extent to which a business's revenue is dependent on a few clients. For instance, if a single customer accounts for 40% of

Business valuations don’t happen in a vacuum.They’re shaped by a range of internal and external factors—but few have more impact than the broader economic cycle. At BusinessValuation.co.uk , we often speak to business owners who are surprised that the same company could receive very different valuations at different points in time. The reason? Market sentiment, buyer appetite, and financial metrics all shift in line with the economic environment. Whether you're planning to se