The valuation of interests in private companies can be a subjective task.
At Mercer & Hole we aim to provide detailed, yet understandable, valuations, that stand up to scrutiny.
Valuations are undertaken by Mercer & Hole for a number of scenarios:
- On behalf of acquirers considering purchasing a business
- On behalf of vendors considering the sale of their business
- Shareholder disputes
- Divorce cases
- Tax purposes (Capital Gains, Inheritance, share options etc)
- On behalf of funds in order to value their portfolio’s
Our valuations use current best practice methods, that benefit from our experience of transactions within the small to mid-market. Our valuations often involve colleagues across the firm. This utilises our different skill sets and helps produce a balanced valuation.
Valuations in dispute situations need to be handled carefully. We can act as an expert witness for the claimant or respondent and can review valuations prepared by other parties. We are also instructed as the jointly appointed expert witness in cases where we provide a totally independent and objective valuation.
- Preparation of valuation models – our team is experienced in applying various models to businesses in order to give a reasonable valuation. These techniques include the asset, earnings and discounted cash flow models.
Valuations can be made of individual companies, entire groups or individual departments/sectors. Our reports include a full explanation of how the valuations are calculated.
- Review of valuations prepared by other parties – in the course of acquisition negotiations, it is common that our clients need to evaluate valuations prepared by other professional advisers. We can provide a simple overview or a comprehensive critique of other valuation models.