Case Study: Indigo IT

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Published: 16 Apr 2019

Founded in 1991, Indigo IT provides IT and Telecoms services to businesses based along the M3 corridor and London.

Whilst exploring the opportunity to sell the business Terry Galvin, Managing Director, was provided with a sale price for the company, but was concerned that it was undervalued. It was at this point that he approached David Cane of Sundial Tax & Finance.

“I had an idea of the value of the business, but I wanted the opinion of an expert.”
Terry Galvin

To determine the valuation of Indigo IT the following information was requested: 

  1. Copies of the accounts for the last three years
  2. Management accounts for the current year and forecast for the following year
  3. Details of company organisation, operation, suppliers and customers
  4. A summary of different products and services sold and associated sales value and profitability.

“David was very clear about the information he required. This made the exercise straight forward and an easy process.”

Most companies have information systems that will provide the data required to calculate the value of a company. Although, it can be expected that some reports need further analysis for forward projection, as in the case of recurring revenue.

“David took the time go through and explain the logic for the basis of his valuation.”

Companies looking to purchase another company will have different drivers to do so. The way they view the value of a company will depend on their objectives and future plans.

“David validated my own thoughts on the value of the company. It was an excellent exercise from which I learnt a great deal, as David is generous with his knowledge.”

Obtaining a valuation is a key step in the process of selling a company. It allowed Terry to make an important strategic decision about his business, which was to defer the sale to such time as it fitted in with his own personal financial plans.

“David is an excellent guy to work with and I trust him implicitly.”

If you are planning to sell your business, please contact David Cane on 07749 080 806 or email for an informal no obligation chat.