How valuations are quoted locally
UK businesses are usually priced on adjusted EBITDA, and results are reported in pound sterling (GBP).
- Deals are typically structured cash-free, debt-free with a normalised working capital target.
- Directors' remuneration and dividends are normalised to a market salary before applying a multiple.
- Freehold premises are usually carved out and valued separately.
- Earn-outs and deferred consideration are common where earnings depend on the owner.
Who buys businesses here
- Trade buyers and regional consolidators
- Management teams via MBO with lender support
- Private equity for businesses with recurring revenue
What commonly reduces the price
- Completion accounts and working capital pegs can move headline price significantly.
- Tax reliefs on disposal change frequently — confirm current rules with an adviser.
Whichever market you are in, the underlying discipline is the same: normalise earnings, apply several methods, and weight them by how well each fits the business. See our twelve valuation methods for the full detail.