There are numerous situations that may demand the valuation of a company and its assets. No matter what the reason, we can provide business valuations, financial advisory and negotiation strategies:
For a sale or distribution of ownership
For an upcoming sale or redemption of shareholders
For a second opinion of a received bid from a prospective buyer
For a planned acquisition of another company
For capital procurement
For disputes or financial losses
As strategic input for restructuring or major investments
We use established valuation methods including net asset valuations, relative valuations and yield valuations. However, in order to determine a fair valuation, our experience and understanding of the market will often be decisive since each company will find itself in a unique situation with specific contexts and conditions that must be taken into consideration.
- Net asset valuation involves determining a company’s value by calculating the difference between the value of its assets and its liabilities, i.e. the company’s equity. Since the book value of an asset often deviates from its current market value, the values reported in the accounts must be adjusted to determine a fair net asset value that should also take into account deferred taxes and any other commitments not reported in the balance sheet.
- Relative valuation involves deriving a value of the company using previously applied pricing for recent sales of similar organisations. It can, however, be difficult to find comparable entities to refer to, and information of private transactions is seldom made public. We use our extensive network and desktop research [HP1] to determine comparative prices and valuations.
- Yield valuation involves forecasting future cash flows that the company is expected to generate, and calculates these cash flows based on an assessed yield requirement taking into consideration the perceived risk and opportunities for external funding. There are many variables that affect the outcome of a yield valuation, requiring both experience and professional assessments to determine a…
Please contact us to find out more about business valuations.