Valuation based on 25 years of experience
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Determining Company Value
The value of a company is based on its expected financial performance, including the associated risks. To assess a company’s risk, we consider the industry, scale, management, and various other factors. Our expertise allows us to accurately value all these elements.
Our methodologies for valuing shares draw on over 25 years of experience in corporate valuation. We utilize international databases and combine this data with insights from real-world transactions and their associated multiples to ensure an optimal blend of theory and practice.
Reasons for Business Valuation
Business valuations are conducted for various reasons, such as mergers or acquisitions, buy-outs of co-shareholders, transfers to external parties or within the family, resolving conflicts among (family) shareholders, addressing tax issues in business succession, or selling shares. We employ the most suitable valuation techniques tailored to the specific purpose and available information. This process begins with a preliminary assessment and can go deeper as needed. Accurate valuation necessitates a thorough analysis of historical data and future projections, customized to the company’s context.
Optimal Methods for Business Valuation
One effective method we use is the discounted cash flow (DCF) method. Future free cash flows are discounted based on a required return specific to the company. This required return is influenced by factors such as the company’s debt-to-equity ratio, prevailing interest rates, and the market in which it operates. The DCF method yields an indicative value, which we refine by filtering out incidental results, critically evaluating management forecasts, and working with growth or margin scenarios. This model provides a solid foundation for in-depth analysis.
Our analyses are benchmarked against our extensive experience in supervising M&A transactions, ensuring relevant comparisons with similar companies in comparable international markets. Ultimately, valuation is the starting point, not the conclusion, in determining the final share price. We actively engage and assist in negotiations to help reach the best outcome.
Personal Touch
We conduct valuations collaboratively with our clients, incorporating personal insights from entrepreneurs or shareholders. Our goal is to understand the story behind the numbers, moving beyond purely online valuations. Our approach not only determines the valuation outcome but also provides valuable insights into the factors influencing the company’s value and profitability.
Our findings are compiled into a detailed report, presenting a comprehensive analysis and research. This report offers clear and extensive insights into the valuation process, ensuring our clients have a thorough understanding.
Our view on valuation of a company
Business valuations entail more than just number-crunching. Understanding both market dynamics and the key value drivers of a company is crucial. We approach our work meticulously yet with a personal touch.
Are you considering a valuation for your company, or would you like a deeper understanding of our methodology? Feel free to reach out to us for a personalized discussion.
