Valuing a Company? Are You Using the Right Method?

Valuing a Company? Are You Using the Right Method? Putting a price on companies can be a tricky business and there is more than one formula for assessing their worth. In one case, a firm of professional valuers who used the wrong method were found liable by the High Court to pay six-figure compensation to a bank which lent £1.8 million on the basis of its advice. A company that owned two entertainment venues in a seaside town borrowed the money from the bank to enable it to purchase a third. On the basis of their turnover, the valuers advised that the three venues were together worth £4.2 million. However,…