This is the second episode in our series, The Private Company Valuation Forum. The aim of The Private Company Valuation Forum is to offer better insight into how to value private businesses, and this episode brought in-depth analysis of 2024’s market challenges and a forward-looking perspective on 2025.
Hosted by Richard Angus, Head of Business Development at Hardman & Co, with guests Doug Lawson of MarktoMarket and Peter Black of Snowball Group, the speakers covered significant trends affecting private markets, including the slowdown in capital flows between companies and investors. Fundraising, particularly within the Enterprise Investment Scheme (EIS) sector, has been notably tough, despite robust entrepreneurial activity. The forum underscored the sentiment that while market conditions have been challenging, opportunity remains for those poised to act strategically.
Discussions revolved around several critical factors influencing private valuations. The forum addressed the effects of rising National Insurance costs, which have burdened businesses with substantial financial adjustments, forcing many to rethink strategies around pricing, staffing, and overall valuation impact. Interest rates also took centre stage; while they appear to have peaked, the anticipated slower decline has implications for deal-making, debt capabilities, and overall market dynamics. Additionally, the emergence of AI as a transformative force was examined, with its dual impact of enhancing valuations for tech-driven companies while challenging traditional business models to adapt.
Looking ahead to 2025, the forum explored broader geopolitical and economic factors, including US-China trade dynamics and potential shifts in leadership with Donald Trump’s reentry into the political arena. Despite uncertainties, there remains significant client interest in exploring options to enhance business performance and profitability, whether through operational improvements or strategic timing of exits.
Watch the video now to find out more about private company valuations, and get in touch with Richard if you are interested in finding out more about our corporate valuation work.
