Valuing a small or micro-business in the UK isn't just about looking at your last balance sheet. While large enterprises are valued on EBITDA multiples, smaller companies have multiple value drivers that are often overlooked.
The age of your company is a primary asset. A company that has been active or dormant for 5 years is inherently worth more than a brand-new registration. This is because age demonstrates stability and passes strict credit and banking checks much easier.
Other key components include your VAT registration status (which saves a new buyer the 4-8 week application delay), your sector's SIC codes, and whether you have a clean history of filings. We look at all of these factors to determine your maximum market value.
Key Takeaways
- Valuations depend on historical trading age and turnover.
- VAT-registered status adds an automatic premium.
- Sector-specific SIC codes can attract strategic buyers.