Business Valuation in Nigeria: Company, Equity and Acquisition Value

“How much is my business worth?” needs a purpose, date and clearly defined interest. The value of an operating business, a minority shareholding and selected assets can differ. An asking price is also different from a professionally supported valuation conclusion or an agreed transaction price.

Wigmore Trading welcomes company-valuation and acquisition-planning enquiries in Nigeria. We can discuss the commercial brief and appropriate specialist support. An independent valuation must be commissioned from a suitably qualified professional, with scope, independence, conflicts and permitted reliance established separately.

Define what is being valued

Specify the entity, assets or ownership interest, the valuation date and the decision it supports. A sale, financing discussion, shareholder matter or reporting requirement may need a different engagement. Confirm the relevant basis of value rather than using “fair market value” as a generic label for every purpose.

Understand the main approaches

Income approaches such as discounted cash flow assess expected economic benefits using appropriate assumptions. Market approaches consider relevant comparable companies or transactions. Asset-based analysis can be appropriate in particular circumstances. Method selection and reconciliation require professional judgement.

A headline multiple from another business is not a reliable valuation on its own. Comparability can be affected by size, sector, growth, margins, risk, geography, control and the quality of the underlying data.

Prepare credible information

Provide reconciled accounts, management information, forecasts, debt, cash, working-capital detail and material operating facts through a controlled process. Explain owner-related costs, unusual items and dependencies transparently. Unsupported adjustments should not be used simply to raise the result.

SMEs and startups may have limited history, while fintech, manufacturing, oil and gas, banking and insurance businesses bring different drivers and regulatory considerations. Ask which sector expertise and other specialist inputs the assignment requires.

Check professional scope and independence

The IVSC standards framework covers engagement scope, bases, approaches, inputs and reporting. Ask the named professional which standards apply and what work supports the report. A general estimate or business introduction is not automatically an independent standards-compliant valuation.

Disclose conflicts and establish the intended users and reliance terms. In Lagos, Abuja or another location, confirm the actual provider and access required rather than choosing solely by a “near me” search result.

Use the conclusion appropriately

Review assumptions, uncertainty, sensitivities and limitations. A conclusion can support a range of decisions but does not guarantee a buyer, finance approval or sale price. Diligence findings and negotiated terms can change the economics of a transaction.

Separate valuation, quality-of-earnings review and acquisition modelling. They can inform each other while serving different purposes.

Can I get a fixed value from turnover alone?

Turnover does not establish profit, cash generation, obligations or the rights being valued. A meaningful assessment needs a defined scope and evidence.

What should I send Wigmore?

Start with sector, broad scale, purpose, ownership interest and timing. The team can discuss the appropriate valuation brief and specialist engagement before sensitive records are shared.

Related acquisition and advisory guides

• Deal Origination and Corporate Matchmaking in Nigeria: Acquisition Search
• Corporate Divestment and Asset Disposal in Nigeria: Sale-Planning Guide
• Business Succession and Founder Exit Planning in Nigeria
• M&A Financial Modelling in Nigeria: Acquisition Scenarios and Deal Value
• Financial Due Diligence and Quality of Earnings in Nigeria
• Commercial and M&A Due Diligence in Nigeria: Scope and Checklist
• Company Verification Before Acquisition in Nigeria: Ownership and Risk Checks
• M&A Transaction Documents in Nigeria: Legal Scope and Negotiation Planning
• M&A Structuring and Corporate Restructuring in Nigeria: Options to Review

Updated 3 November 2026. This is general process guidance; it does not establish a legal, tax, audit, valuation or financing opinion, a live deal listing or a guarantee of completion.