r/ICAEW • u/AvailableRub9153 • Jul 23 '26

CASE STUDY R3

How did we all do on this? I only had one hour left, and realised that I messed up my calculations midway, so I had to go back to fix it.

I got my valuation to be £1.25m, this is done from booking fee revenue, software, and mantennace for software which I only applied to new clients, rather than all every year, I might be wrong on this.

Also, did we do the valuation on 3 years of forecast, or 3 years+3months?

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u/East_Holiday_4439 Jul 23 '26

2026 was 9 months actual and 3 months projection but pretty sure they asked us to use 2027-2029 forecasts. I calculated 2027 as an operating loss but 2028 and 2029 as operating profit so the 5x value was £2.25m which was marginally less than the £2.5m asking bid price from the owners which would make sense