Formal Valuation Reports
Formal Business Valuation Reports for HMRC, Courts, Trustees and Boards
Independent, written, signed UK SME valuation reports prepared to a standard suitable for HMRC, EOT trustees, civil and family courts, corporate boards and shareholder transactions.
A formal business valuation report is the document that does the talking when the owner of the business is not in the room. It is the document HMRC reads when reviewing an EMI option grant. It is the document a judge reads when shareholders are in dispute. It is the document an EOT trustee reads before signing off on the price for an Employee Ownership Trust transaction. And it is the document a board reads before approving a buy-out, a share issue or a divestment. Because the audience matters, the report has to be more than a number. It has to be a piece of evidence.
When a formal valuation report is required
We prepare formal reports for four main audiences. HMRC submissionscover EMI option valuations (AMV and UMV agreed via form VAL231), Employment Related Securities, growth share pricing, probate valuations of private company shares, and Capital Gains Tax planning. Court and dispute work covers single joint expert valuations in divorce, shareholder dispute valuations under the Companies Act, and expert determinations under the articles of association. EOT and MBO reports give trustees and lenders the evidence they need to sign off on a transaction at market value. Board and shareholderwork covers buy-outs, share transfers, restructures, internal price-setting under a shareholders' agreement and pre-investment valuations for external rounds.
What goes into the report
A formal report from BusinessValuation.co.uk follows a consistent structure so the audience knows exactly where to find what they need. We open with the purpose, the valuation date and the standard of value being applied. Market value, fair value, investment value or a contractual basis specified in the articles. We then summarise the business: history, products and services, customer base, management team, key contracts and risk profile. The financial analysis section presents three years of normalised earnings, working capital and capital expenditure, with every adjustment documented and explained.
The methodology section sets out which valuation methods we have applied, typically earnings-based and discounted cash flow for trading SMEs, asset-based for property-rich or loss-making businesses, and why each method is given the weight it is. We support the conclusion with comparable transaction evidence drawn from private company deal databases, listed multiples adjusted for size and liquidity, and any sector-specific evidence relevant to the business. Sensitivity analysis shows how the answer moves when the key assumptions are flexed.
Independence by design
Formal reports only carry weight if the valuer is independent. Every engagement we take is on a fixed fee, agreed before any substantive work begins. We do not work on contingency, we do not take commission from buyers or brokers, and we do not act for both sides of an adversarial process without explicit written consent. The report states our independence on the cover page and supports it with a signed declaration.
That structural independence is what allows the report to do its job. HMRC, a court or a trustee will not give weight to a valuation prepared by an adviser whose fee depends on the outcome. They expect to see a professional opinion that would have been the same regardless of who paid for it. That is what we deliver.
From engagement to delivery
Engagement starts with a free scoping conversation. We confirm the purpose, the audience, the valuation date and the deliverable, then issue a fixed-fee engagement letter and a structured information request. From receipt of the information, most reports are delivered in two to four weeks. The report is supplied as a bound PDF and, where useful, accompanied by a one-hour readout call so you and your advisers can interrogate the methodology before relying on it.
Formal valuation report FAQ
Common questions from owners, directors, trustees and advisers commissioning a formal valuation report.
What is a formal business valuation report?
A formal valuation report is a written, signed document prepared by an independent valuer that states a company's market value at a specific date, sets out the methodology used and explains the evidence behind the conclusion. It is the document that is shared with HMRC, courts, trustees, boards and other shareholders. Distinct from a verbal estimate or a calculation done for internal management use.
Who needs a formal valuation report rather than an informal estimate?
Anyone whose audience is not just themselves. If the valuation will be filed with HMRC (EMI, ERS, probate, CGT), used in court (shareholder dispute, divorce), shown to EOT trustees, presented to a board, or relied on by a third party in any transaction, it has to be formal. Informal estimates are useful for internal thinking and nothing else.
What is in the report?
The purpose and date of the valuation, the standard of value applied, a summary of the business, three years of normalised financial analysis, the methodology (earnings, DCF, asset-based) with reasoning for the choice, comparable transaction and market evidence, sensitivity analysis showing how key assumptions move the answer, a reasoned valuation range and a single-point conclusion, plus appendices and a signed engagement letter.
How long is a typical report?
Most formal SME valuation reports run to 25 to 50 pages including appendices. EOT and HMRC reports tend to be at the longer end because the audience expects the methodology and evidence to be set out in full. We do not pad. Every page has to earn its place.
How long does it take to prepare?
Two to four weeks from receipt of complete financial information for most UK SMEs. Carve-outs, group structures and reports requiring extensive standalone modelling can take six weeks. Urgent timetables are accommodated where the scoping call confirms it is realistic.
Will HMRC, the court or a trustee accept the report?
Our reports are written to a standard suitable for HMRC's Shares and Assets Valuation team, civil and family courts in England and Wales, EOT trustees, and corporate boards. The decision to accept any valuation rests with the receiving party, but the structure, evidence base and reasoning in our reports are built specifically around what those audiences expect to see.
What does a formal valuation report cost?
Fees are fixed and agreed upfront on a scoping call. They depend on the size and complexity of the business and the purpose of the report. Reports for HMRC submissions and shareholder transactions are typically less than the value swing they protect against. The economics make sense for any business with material equity at stake.
Can you sign a report jointly with another adviser?
Yes, where the engagement is set up as a single joint expert appointment under CPR Part 35 or as a co-signed report for HMRC purposes. The engagement letter sets out the duty of each adviser and the scope of the joint conclusion.
Commission a formal valuation report you can rely on
Fixed-fee engagement with Tony Vaughan. HMRC, court, trustee and board-ready.