Company Valuation Services, Share Valuation and Share Scheme Valuation Advice (UK)

Expert Company Valuation and Share Scheme Valuation Services in the UK

Need a reliable company valuation or share valuation that is fully HMRC-compliant and defensible?

At David Craddock Consultancy Services, we provide specialist company valuations, share valuations, and share scheme valuation advice for UK businesses.

Our valuations are designed to withstand HMRC scrutiny and are widely used for:

  • Employee share schemes (EMI, CSOP, SIP, SAYE)
  • Company sales and acquisitions
  • Succession planning and management buyouts
  • Share restructuring and trust arrangements
  • Tax planning and reporting

What is a Company Valuation?

A company valuation is the process of determining the economic value of a business as a whole.

It is commonly required for:

  • Share issues and transfers
  • Employee ownership schemes
  • Business sales or acquisitions
  • Tax and HMRC reporting purposes

Because private companies do not have a public market price, valuations must be carefully constructed using accepted financial methodologies.

👉 A professional company valuation ensures accuracy, compliance, and defensibility under HMRC review.

Share Valuations Explained

A share valuation determines the value of individual shares within a company.

This is essential for:

  • Employee share schemes
  • Share option pricing (EMI & CSOP)
  • Transfers between shareholders
  • Trust-based share arrangements
  • Exit planning and succession

Share Valuation vs Company Valuation

  • Company valuation = value of the whole business
  • Share valuation = value of individual shares within that business

Both are critical in employee ownership and tax planning structures.

Share Valuations for Employee Share Schemes

We specialise in share scheme valuations for HMRC-approved arrangements, including:

  • Enterprise Management Incentives (EMI)
  • Company Share Option Plans (CSOP)
  • Share Incentive Plans (SIP)
  • Save As You Earn (SAYE)

These valuations ensure:

✔️ Correct option pricing
✔️ HMRC compliance
✔️ Tax efficiency for employees and employers
✔️ Reduced risk of disputes or adjustments

Share Scheme Valuation: What Is Required and Why It Matters

A share scheme valuation is a specific type of share valuation prepared in the context of an employee share plan. For HMRC-approved schemes such as EMI and CSOP, the valuation determines the option price and must be agreed with HMRC (under EMI) or prepared to a defensible standard. Key requirements include:

✔️ EMI valuations: submitted to HMRC for agreement before options are granted. An incorrectly valued EMI option can lose its tax-advantaged status entirely.
✔️ CSOP valuations: must reflect market value at the date of grant. HMRC does not pre-approve these but will scrutinise them on enquiry.
✔️ EOT valuations: must represent genuine market value for the trust purchase to qualify for CGT relief. David Craddock advises on EOT valuations as an integral part of his EOT advisory service.
✔️ Growth share valuations: require specialist analysis of the company’s capital structure and waterfall to determine the hurdle rate and current value of growth shares.

Why Accurate Company and Share Valuations Matter

HMRC applies strict scrutiny to valuation submissions.

An incorrect valuation can result in:

  • Unexpected tax liabilities
  • Penalties or adjustments
  • Rejection of share schemes
  • Disputes during transactions

A professionally prepared valuation ensures your position is defensible, compliant, and robust under review.

Our Valuation Expertise

With over 35 years of experience, David Craddock provides expert guidance in:

Company Valuation Services

  • Whole company valuations
  • Minority interest valuations
  • Business sales and acquisitions
  • Succession planning valuations

Share Valuation Services

  • Employee share scheme valuations
  • Growth share and option valuations
  • Trust and ESOT valuations
  • Internal share pricing structures

Learn more about: Long-Term Incentive Plan (LTIP)

Navigating Company Valuations: A Practical Guide

Valuing a private company is not straightforward. Unlike listed companies where a share price is publicly available, private company valuations rely on financial analysis, comparable transactions, and accepted HMRC methodology. The main approaches used in UK share scheme and company valuations include:

1️⃣ Earnings-based valuation (P/E multiple): applies a sector-appropriate multiple to maintainable earnings. Most common for trading companies.
2️⃣ Net asset valuation: used for asset-rich or investment holding companies.
3️⃣ Discounted cash flow (DCF): applied where future cash flows can be reliably projected.
4️⃣ Comparable transaction analysis: uses recent deals in the same sector to benchmark value.

The methodology chosen, and the inputs used, have a direct impact on the valuation outcome and on how HMRC will view the submission. David Craddock works directly with HMRC as Technical Secretary to the Share Valuation Worked Examples Group, giving clients a unique level of insight into how HMRC assess and challenge valuation submissions.

HMRC-Compliant Share Valuation Advice

We provide valuations that meet HMRC expectations and help clients:

  • Agree valuations with HMRC where required
  • Support share scheme approvals
  • Reduce tax risk exposure
  • Maintain compliance across ongoing schemes

⚠️ With HMRC no longer offering routine valuation checks, independent expert valuation is now more important than ever.

Why Choose David Craddock for Share Valuations?

✔️ Over 35 years of specialist valuation experience
✔️ Trusted HMRC technical expertise
✔️ Proven track record in complex valuation cases
✔️ Deep experience in employee share schemes
✔️ Clear, defensible valuation reports

David Craddock also serves as Technical Secretary to HMRC valuation working groups, giving clients rare insight into how valuations are assessed.

Our Company and Share Valuation Process

  1. Initial consultation and fact-finding
  2. Financial and market analysis
  3. Application of valuation methodology
  4. Draft valuation report
  5. Review and refinement
  6. HMRC submission support (if required)

Who We Work With

We provide valuations for:

  • Private companies
  • SMEs and high-growth businesses
  • Corporate groups
  • Employee-owned companies
  • Legal and tax advisers

Frequently Asked Questions

What is the difference between company valuation and share valuation?

A company valuation determines the total business value, while a share valuation determines the value of individual shares.

Why is a share valuation important for HMRC?

HMRC requires accurate valuations for employee share schemes and tax compliance to ensure correct reporting and tax treatment.

How long does a company valuation take?

Typically between a few days for analysis and several weeks if HMRC approval is required.

📞 Speak to a Valuation Specialist

Need a company valuation or share valuation you can rely on?

David Craddock provides expert, HMRC-compliant valuation advice for UK businesses.

📞 Call 01782 519925
📩 Email enquiries@dcconsultancyservices.com

Speak to us today to ensure your valuation is accurate, compliant, and defensible.