Valuation knows no boundaries - Acquisition International magazine (July 2016)

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Valuation Knows no Boundaries 1707AN35

Valuation Knows no Boundaries PEM Corporate Finance is an M&A and business valuations firm based in Cambridge, England. We’re part of Kreston International – the 10th largest global network of independent accounting firms. We advise SMEs on M&A, buyouts, business valuations, succession planning, and financial due diligence.

Company: PEM Corporate Finance LLP Name: Lake Falconer, Partner Email: lake@pemcf.com Web: www.pemcf.com/valuations Phone: +44(0)1223 728 306

Valuation knows no boundaries. We predominantly work in and around Cambridge, London, the northern Home Counties and East Anglia but we have also done valuation work from as far afield as Israel to the USA. The need for valuations Sometimes we are asked for a formal valuation when what is actually needed is strategic M&A advice. For this process, the strategy needs a well-developed view on what will drive the business valuation. In other cases, a valuation may be required as input to an M&A negotiation, or a private equity fund raising. Generally speaking, a formal business valuation is often required for corporate governance, tax planning, shareholder exits and disputes, business planning, or business valuation for divorce. In legal disputes, an expert witness report may be required. Valuation and saleability PEM Corporate Finance see the continued demand for valuations, to support transactions, and as part of succession and strategic planning for SMEs. A saleability and valuation review of your business can be beneficial for a number of reasons. If your business is valuable and sellable, you can exit at a time of your choice. In fact, it is probably more fulfilling to manage, and it is probably capable of surviving family succession should you chose that route. But some things cannot be rushed – if building your business to its target valuation will take five years, you’d better find out what it is worth today, and how to enhance it.

A pricing model for early stage technology companies Valuing early stage tech is difficult, but entrepreneurs find it helpful to understand how shaping their plan impacts on the pricing of their equity. PEM Corporate Finance works with tech businesses to help them develop a view on pricing for discussions with investors. Deeper insights Business valuation is too often focussed on the numbers, the tax rules, and academic theory. Here at PEM Corporate Finance, we believe it needs to be based on deep understanding of the business and its performance and the issues it faces – this makes it a useful tool for management. PEM Business Valuations is a multi-disciplinary team of seasoned corporate finance, accounting and tax professionals. This skills mix delivers a realistic and robust view of the company being appraised. And we bring commercial reality to bear based on our extensive deal doing experience as lead advisers. Challenges in 2016 and beyond The challenge for valuers today is how to reflect the uncertainties of business life. Alongside the traditional analysis tools like SWOT and Porters Five Forces, VUCA which attempts to derive responses to Volatility Uncertainly Complexity and Ambiguity, these can be a helpful way to work with SMEs.

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