Our SME valuations focus on what a realistic buyer would pay for the business without its current owner, and on the adjustments needed to get from the accounts to that answer.
Situations
When UAE clients ask for this valuation
- 1You are thinking of selling and want to know what the business is realistically worth.
- 2You are buying out a partner or bringing one in.
- 3You need a valuation to support a bank facility or a family arrangement.
- 4You want to understand what would increase value before a future exit.
Who asks us
Typical clients
- Owner-managers and partners
- Prospective buyers
- Accountants acting for SME clients
What we value
The subject of the valuation
Restaurants and cafés, clinics, trading companies, contracting businesses, agencies, consultancies and other owner-managed operations, whether held through a mainland LLC, a free-zone company or a sole establishment.
Our method
How we reach the figure
We normalise earnings to a commercial basis. If an owner draws no salary, a buyer would have to pay a manager, so a market salary is deducted. Personal costs paid by the business are added back, and one-off items are removed. Visa, licence and accommodation costs are reviewed so that only those a buyer would carry remain.
The resulting maintainable earnings are capitalised at a multiple reflecting size, risk and transferability, which for small businesses is usually well below the multiples quoted for listed companies. Where earnings are thin or unreliable, net assets and the value of stock and fit-out are considered alongside.
| Income | Maintainable earnings after a market manager's salary | Usual starting point |
|---|---|---|
| Market | Multiples for small owner-managed businesses | Cross-check |
| Asset | Stock, fit-out and net assets where earnings are thin | Where relevant |
Value drivers
Points that move the value
- Owner dependence
- Whether customers, suppliers and staff would stay if the owner left.
- Lease and location
- Remaining lease term, renewal terms and how much trade depends on the site.
- Licence transfer
- Whether the trade licence, permits and approvals can move to a new owner, and at what cost.
- Staff
- Key employees, visa sponsorship and accrued end-of-service gratuity.
- Record quality
- How far the accounts and sales records can be relied on by a buyer.
Documents
What we will ask you for
- Financial statements and monthly sales records
- Bank statements where the accounts are unaudited
- Lease agreement and trade licence
- Staff list with salaries and service dates
- Details of owner drawings and personal expenses
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
Most SME owners need a concise, clearly reasoned report they can use in negotiations or share with a partner or bank. Formal reports are available where the figure will be relied on by others.
Timing
Often two to three weeks once the records are received.
Fees
SME valuations are scoped to the size of the business and the report required, and we confirm the fee in writing before starting.
What affects the feeCompare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Is my business worth a multiple of turnover?
- Rarely. Turnover multiples ignore costs and risk. Value usually follows sustainable profit and how transferable the business is.
- What is goodwill in a small business?
- It is the value above the net tangible assets, arising from customers, reputation and location. Goodwill tied to the owner personally may not transfer to a buyer.
- Can you value a restaurant with several outlets?
- Yes. Each outlet's performance, lease and licence position is considered, along with central costs.