Business valuations are attracting more attention than ever, and the reasons for this shift are far from incidental. Across Northern Ireland and beyond, owners are looking at their businesses in a new light, not only because of the markets they operate in, but also because of the policy and tax environment on the horizon.
The most immediate driver is the change to Inheritance Tax rules scheduled for April 2026.
These reforms may seem a distant prospect, but they are already influencing the decisions of families and shareholders who wish to plan ahead.
Valuations in estate planning and ownership models
For many people, the business they own is their single largest asset. A valuation is therefore not just a technical exercise but a central part of estate planning. Without an accurate picture of a business’ value, it is impossible to make informed decisions about succession, tax exposure, or the transfer of wealth to the next generation.
At the same time, there is growing interest in Employee Ownership Trusts (EOTs). EOTs have been part of the landscape for some time, but their appeal has broadened as owners think carefully about legacy, employee engagement and the sustainability of their businesses.
They can provide a route that rewards staff while offering owners a tax-efficient way to step back. At the heart of every EOT transaction is, a valuation. It determines the level of funding required, the structure of the trust, and the balance between financial and cultural objectives.
More than numbers
For anyone outside the advisory world, it might be tempting to see valuations as a matter of multiples and discount rates. But a good valuation is more than that. It requires understanding how a business operates, where its competitive edge lies, how resilient its earnings are, and what risks or opportunities may shape its future.
Every business has its own story, and valuation is the process of interpreting that story in financial terms.
The uses of valuation are broad. They underpin negotiations between shareholders, inform exit strategies, support tax planning and compliance, and provide benchmarks for management to measure performance. In the context of employee share schemes, they can also help align incentives and retain key people.
All of these uses have existed for many years, but the current combination of tax reform, succession challenges and shifting ownership models means the need for robust valuations is sharper than ever.
Valuation is also a specialist discipline. Just as businesses differ in their models and markets, so too do the approaches required to understand their worth. A manufacturing company with capital-intensive operations will require a very different analysis than a technology firm built on intellectual property. Having the right insight and data is critical, particularly when valuations are likely to be scrutinised by tax authorities, lenders or prospective buyers.
Market insight and global context
In Northern Ireland, one advantage is access to live market data. The region has been remarkably active in terms of deals and investment over recent years, and each transaction adds to the pool of evidence about what buyers are paying, which sectors are attracting premium valuations, and how deals are being structured. This real-time intelligence means valuations here are grounded in reality, not just theory.
Yet local knowledge is only part of the picture. In an interconnected economy, businesses in Northern Ireland are competing with and selling to counterparts across Europe, North America and beyond. Market dynamics and investor appetite often transcend borders.
Bringing an international perspective to valuation work allows owners to not only see how their business is viewed within a Northern Ireland context, but also how it might be benchmarked globally.
A catalyst for future decisions
What strikes me most in recent conversations is how business owners approach valuation as a catalyst for wider thinking. Once the question “what is my business worth?” is asked, it often leads naturally to “what do I want for the future of this business?” That might be a transition to the next generation, a sale to an external buyer, or a new ownership structure that involves employees.
In every case, the valuation is not the end point but the starting point for decisions that shape the future.
As April 2026 approaches, demand for valuations will continue to rise. Taking early steps provides greater flexibility and reduces pressure as deadlines loom. And for those considering EOTs or sales, understanding value now gives a stronger foundation for planning and negotiation.
Business valuations can sometimes be viewed as technical or niche. In reality, they sit at the intersection of finance, strategy and people. They tell us not only what a business is worth today, but also what opportunities and challenges lie ahead.
In times of change – whether in markets, tax rules, or ownership models – that understanding is invaluable.
