If you’re a business owner, you may have asked yourself: “What is my business actually worth?” Whether you’re considering an exit, bringing in investors, or simply planning for the future, understanding your company’s value is crucial.

At Modus Accountants, we provide professional business valuations that give you clarity and confidence. Here’s what you need to know about how valuations work in 2025.

1. Why Get a Business Valuation?

• Exit planning – Know your worth before putting your company on the market. (see our exit planning blog)
• Investment or funding – Attract investors with a clear valuation.
• Succession planning – Transfer shares or ownership fairly.
• Strategic planning – Understand strengths and weaknesses that affect value.

2. Common Valuation Methods

Business valuations aren’t one-size-fits-all. Here are the standard approaches:

Earnings Multiples (EBITDA)

• The most common method for SMEs.
• Value is based on a multiple of profits before interest, tax, depreciation, and amortisation.

Asset-Based Valuation

• Useful for property-heavy or asset-rich businesses.
• Value = assets – liabilities.

Discounted Cash Flow (DCF)

• Projects future cash flow and discounts it to present value.
• Best for businesses with predictable earnings.

3. Factors That Influence Valuation

Several elements can increase (or decrease) your business’s value:

• Profitability and recurring revenue.
• Customer base and reliance on key clients.
• Quality of financial records and systems.
• Strength of management team.
• Sector growth trends.

4. Preparing for a Higher Valuation

If you’re planning to sell or exit, preparation can add significant value. Steps include:

• Tidy up financial records – Clean accounts make due diligence smoother.
• Strengthen contracts – Ensure agreements with clients and suppliers are watertight.
• Diversify income – Reduce dependency on one customer.
• Invest in systems – Documented processes make the business more attractive to buyers.

5. How Modus Helps with Valuations

We work with business owners across Oxfordshire to:

• Provide professional valuation reports.
• Model different exit scenarios.
• Plan for tax efficiency (including Business Asset Disposal Relief).
• Support negotiations alongside legal advisors.

FAQs – Business Valuations

Q: How long does a valuation take?
Typically 2–4 weeks, depending on the complexity of the business.

Q: How accurate is a valuation?
It provides a fair market view, but the final sale price depends on buyer demand and negotiation.

Q: Can I get a valuation if I’m not selling?
Yes — many owners use valuations for planning, succession, or investment purposes.

Next Steps

If you want to know what your Oxfordshire business is really worth, we’re here to help.

📞 Call us today on 01993 225030 or 📧 hello@modus-accountants.co.uk to arrange your free business valuation consultation.