In practice, business valuations are relevant to many aspects of business life and are carried out by lots of people in many different applications and circumstances. Through experience, research and analysis, Intangible Business seeks to take advantage of all of these applications in order to arrive at business valuations which are based on commercial reality and well rounded. Intangible Business’s experience draws on professional consulting and senior business management, with accounting, marketing and valuation qualifications.
Intangible Business also focuses on intangible assets, brands, goodwill, intellectual property and IP as subjective components of business valuation, either as context to values of underlying intangible assets or to support a business valuation. This depends on the circumstances of the intangible asset valuation or business valuation.
There are many issues potentially to analyse when comparing the value of the business as a whole to the sum of the values of its parts. Intangible Business analyses these issues to give a better informed intangible asset valuation or a business valuation. These issues include analysing:
- The individual values of all tangible and intangible assets.
- Value destruction or enhancement through combination (2+2 = 3½ or 2+2 = 5).
- Synergies to investors.
- Value in alternative use to investors.
- A strategic premium to an investor.
- Forced sale or insolvency circumstances.
Widely adopted business valuation approaches used
When valuing a business, Intangible Business adopts widely accepted approaches based on a combination of the income, market and cost approaches.
The income approach uses estimates of future estimated economic benefits or cash flows attributable to the business and discounts them, for the associated time and risks involved, to a present value.
The market approach uses market based indicators of value for comparison with business value or its components.
In the context of business valuation, Intangible Business applies the cost approach to the net assets or liabilities shown in a balance sheet for the business. This is applied with knowledge of the limitations of this approach and the accounting practices used to compile the balance sheet.
Focus of Intangible Business
The application of these approaches benefits from Intangible Business’s specific focus on forecasts, with research and analysis of market transactions for different but comparable assets where relevant information is difficult to obtain. Intangible Business adopts a thorough approach based on a good knowledge and experience of how to find, analyse and present information in a way which better informs a business valuation.
Intangible Business also ensures that the approaches used, and conclusions reached, are commercially balanced, realistic and consistent with analyses required for all the different reasons business valuations are required and carried out in practice.
Support to legal services
If business value is at stake, it will be a significant issue. Intangible Business is experienced in providing expert independent business valuation services for business management, owners, and their legal and other advisers in particular for: dispute resolution; corporate deals; intellectual property management; and supporting other legal services.