Director pay can look straightforward until an SME business valuation starts. Then the question changes from “what was paid?” to “what should have been paid?” That shift can move the final valuation result more than many owners expect. In a UK SME, a director’s salary is not always treated like an ordinary wage. Sometimes it…
Valuation is not just about profit. It is also about how much cash the business needs to keep moving every day. If stock is too high, customers pay late, or suppliers are being stretched, the price can shift fast. Buyers, investors, and advisers all look at stock, debtors, creditors, and cash because they change both…
What if last year’s profit tells the wrong story? Many SME owners expect valuation to follow earnings. Often, that’s sensible. But when profits are weak, uneven, or distorted, that logic breaks down fast. A startup may be investing hard for growth. A manufacturer may have a slow year despite strong machinery and stock. A family…
Exit Planning · M&A Debt Free Cash Free Explained: What UK SME Sellers Must Know Before Going to Market By Kishen Patel, BFP ACA · ICAEW Chartered Accountant Updated March 2026 12 min read If you are planning to sell your company, Debt Free Cash Free is one of the most important deal terms to…
Many SME sales slow down at due diligence because buyers want proof, not promises. If the numbers are unclear, the records are patchy, or the price feels open to argument, the whole deal can drag. A fixed-fee, independent valuation gives both sides a trusted starting point before that happens. It also shows you’ve done the…
HMRC is not hunting for the lowest possible number. It wants a fair, defensible share value, backed by evidence that makes sense on the date that matters. That matters for EMI options, share transfers, and wider tax planning. If the valuation is thin, vague, or too optimistic, it can come back later as a problem…
Net debt adjustments are the bit that turns a headline valuation into a proper price. In plain English, if a business has cash, loans, overdrafts, tax bills, lease liabilities, or other debt-like items on the balance sheet, those amounts can change what a buyer will actually pay for the shares. For UK SME owners, that…
For most UK SMEs, the value in the business is not sitting only in the machinery, stock, or vehicles. It’s in the brand, customer relationships, software, know-how, and the bits that don’t show up neatly on a balance sheet, and those are often worth more than owners expect. That split between tangible and intangible assets…
Selling a business is not the same as having a business worth selling. A company can look profitable on paper and still fall apart under buyer scrutiny. For UK SMEs, exit-readiness is about more than timing. It is about whether the numbers hold up, whether the business can run without the owner in the room,…
When money, tax or a deal is on the table, a rough figure isn’t enough. An informal valuation can help with quick planning, but it may not hold up if HMRC, a buyer or a lender asks where the number came from. That’s where a business valuations certificate matters. At Consult EFC, valuations are prepared…