Corporate Valuation
Corporate valuation is the process of determining the value of a company, considering both the specifics of the business and the objectives that the valuation aims to achieve.
Our team consists not only of experts in corporate finance but, more importantly, of individuals who can understand our clients’ needs and expectations. We interpret the complex realities of companies into numbers and always keeps in mind the final purpose that the valuation is intended to serve.
Company valuation tailored to your needs
Company valuation for purchase/sale transactions
Am I certain of the price for my company?
Valuation in the sales process provides an objective and accurate assessment of the company’s value, helping to establish a fair transaction price, assess what is a realistic value and purchase price It also facilitates better negotiations by giving both the seller and buyer a solid basis for discussing the value of the business. The valuation identifies potential risks and areas for improvement, allowing the seller to prepare the company for sale and maximize its value.
Company valuation for increase in share capital
What is the price for new shares?
Valuation ensures that new shares are issued at a fair price, reflecting the company’s market value. It helps maintain the equity balance among existing shareholders, preventing dilution of their ownership. Additionally, an accurate valuation builds investor confidence, making it easier to attract new capital and support the company’s growth objectives.
Company valuation for need for an independent opinion for the management board, supervisory board, or owners
Were my decisions correct?
Valuation offers an unbiased and objective assessment of the company’s value, ensuring informed decision-making. It helps resolve conflicts of interest by delivering a transparent evaluation that all stakeholders can trust. Additionally, an independent valuation supports compliance with regulatory requirements and enhances the credibility of the board’s decisions in the eyes of investors and other external parties.
Company valuation for restructuring or transformation of the business form
What do I do next with my company?
Valuation provides a clear understanding of the company’s current financial health and value. This information is critical for making informed decisions about which parts of the business to keep, sell, or reorganize. Additionally, an accurate valuation ensures that any changes made during the restructuring process maximize value for stakeholders and align with the company’s strategic goals.
Company valuation for mergers, acquisitions, or divestitures
Is this a fair transaction?
Valuation provides an accurate assessment of the company’s worth, ensuring fair and equitable transactions. It helps identify potential synergies and value creation opportunities, guiding strategic decision-making. Additionally, a thorough valuation mitigates risks by uncovering financial health and potential issues, fostering transparency and trust between parties.
Company valuation for contribution of the enterprise as an in-kind contribution
How many shares do I get?
Valuation ensures that the value of the non-cash asset is accurately determined and fairly represented. This helps maintain equity balance among shareholders and ensures that all contributions are valued appropriately. Additionally, an accurate valuation supports regulatory compliance and provides transparency, fostering trust among stakeholders involved in the transaction.
Company valuation for valuation for reporting purposes
Should it be worth more in the financial statement?
Valuation for reporting purposes ensures that the financial statements accurately reflect the true value of the company’s assets and liabilities. This transparency is crucial for maintaining investor confidence and meeting regulatory requirements. Company valuations provide stakeholders with reliable information for making informed decisions about the company’s financial health and future prospects.
Company valuation for caluation for the private investor test
What are financial pros and cons of this move?
Valuation ensures that public support or financing for a company meets market terms, avoiding undue advantages. This helps maintain fair competition and compliance with state aid regulations. Business reassures private investors that their investments are based on reliable and unbiased financial assessments.
Company valuation for tax optimization
Can I review my tax options?
Valuation is essential for tax optimization because it ensures that assets and liabilities are accurately assessed, allowing for more precise tax planning strategies. This helps in identifying potential tax savings and structuring transactions in a tax-efficient manner. Additionally, an accurate valuation minimizes the risk of disputes with tax authorities, ensuring compliance and reducing the likelihood of penalties.
Company valuation for investment profitability analysis
Were my decisions correct?
Valuation provides a clear assessment of the potential returns and risks associated with an investment. This information enables investors to make informed decisions about where to allocate their resources for maximum gain. Additionally, accurate valuation helps in comparing different investment opportunities, ensuring that capital is invested in the most profitable ventures.
Company valuation for succession planning
How do I make sure those are the best terms?
Valuation provides a clear understanding of the company’s worth, ensuring a smooth transition of ownership. It helps in determining fair buyout prices for departing owners and equitable distribution among heirs. Company valuation supports strategic decisions for future growth and sustainability, securing the business’s long-term success.
Company valuation for legal matters
How do I prove the value in court?
Valuation provides an objective assessment of a company’s worth, which is essential for resolving disputes and litigation. It ensures that settlements, divorce proceedings, and shareholder disputes are based on accurate financial information. Additionally, an independent valuation strengthens the credibility of financial evidence presented in court, supporting fair and equitable outcomes.
Company valuation for liquidation
How much do I get if I sell it now?
Valuation is essential in liquidation because it provides an accurate assessment of the company’s assets, ensuring they are sold for a fair market value. This helps maximize returns for creditors and shareholders, facilitating a transparent and equitable distribution of proceeds. Additionally, an accurate valuation aids in compliance with legal requirements and supports the efficient winding down of the business.
Your goals and needs guide the direction of our collaboration.
Company valuation tailored to your needs
The conclusion of the valuation process is the delivery of a professional valuation report for the enterprise. What are the steps to achieve it?
Free consultation to present the subject of the valuation and your goals
Price offer for the service
Cooperation agreement and NDA
Sending necessary documents
Clarifying information contained in the submitted documents
Conducting the valuation process
Providing a draft version of the valuation report
Corrections to the report based on any feedback from the company
Presentation of the final report along with a discussion of the results
Business valuation process results in a valuation report
What does it contain?
The final report includes key elements such as:
- Purpose of the valuation
- Value standard
- Description of the adopted methodology
- Business model description
- Competition/market analysis
- Income Statement and Balance Sheet forecasts
- Valuation of the enterprise using two recognized methods
- Scenario analysis
- Sensitivity analysis
- Ratio analysis
- Graphical presentation of financial data
- Market environment description
- Risk analysis related to the valuation
Methods of business valuation
The method chosen for valuing a business depends on the specific purpose and function of the valuation. Different valuation methods are selected to meet the objectives for which the valuation is conducted, ensuring accuracy and relevance. The appropriate approach is applied to provide a precise and tailored assessment of the company’s value.
Company Valuation Using the Income Approach, specifically the discounted cash flow (DCF) method, is applied to valuing companies that generate income and positive cash flows, and have a well-established market position, allowing for the assumption of continued generation of such income and cash flows. This method requires the use of financial forecasts for the coming years.
Commonly applied for purchase/sale transactions, Need for an independent opinion or Investment profitability analysis
Commonly applied for purchase/sale transactions, succession planning or some legal matters
Company Valuation Using the Market Approach determines the market value of the entity being valued by comparing it to similar companies whose shares are traded on stock exchanges or have been involved in buy-sell transactions in the private market. Analyzing multiples such as price-to-earnings (P/E), price-to-sales (P/S), and others allows for the determination of the market value of the business being valued.
Company Valuation Using the Asset-Based Approach is particularly relevant for companies whose operations heavily rely on tangible assets such as real estate, equipment, or machinery. Asset-based methods determine the value of a business by estimating the value of its individual assets. The fundamental assumption in this group of methods is that the value of the business equals the net value of its assets.
Commonly applied for liquidation, legal matters or transformation of the business form
The best valuation method for your business depends on its nature and your specific goals. That is why we always want to make sure that we understand your needs as well as specifics and financials of tour company.
Europewide
Business valuation, trademark valuation, and financial modeling are universal services utilized by entrepreneurs worldwide. Our clients come from various parts of the world, and we are committed to providing them with high-quality services regardless of their location or the system in which their business operates. To ensure the highest level of service, we focus on delivering our expertise primarily within the European market.
Read more about our services in your country
FAQs in corporate valuation
Corporate valuation is a service and as is well known, service prices can vary. The price depends on the purpose of the valuation and the chosen method, as well as the size and complexity of the business. Prices can range from 4,000 euros to as much as 30,000 euros.
The process of valuing a company takes 2-4 weeks from the moment we receive the necessary documents. In the case of a complex valuation, this process may take longer. We can present a preliminary value range within 1-2 weeks of receiving the documents.
More information about business valuation and its various aspects can be found on the blog:
We provide a quick valuation service – the client answers a few questions on our website, submits financial statements, and we deliver an estimated company valuation and a simplified report within 48 hours. This is not a full, signed valuation report – for such a service, please contact us.
The more detailed the data we have, the more accurately we can determine the value of the company.
The most commonly required documents are:
- Financial statements from recent years
- Accounting data as of the valuation date
- Company plans and forecasts
- Description of the company’s business model and the industry/niche in which the company operates
- Identification of competing entities
The scope of necessary information may expand due to the specific nature of the company.
Valuing a company is the process of determining its market or potential value. This value can be assessed using various valuation techniques, such as forecasting future income, evaluating assets and liabilities, and comparing it to other companies in the industry. We created an article explaining it in more details – Company Valuation Methods—Complete List and Guide. The purpose of the valuation is to provide information to investors, owners, or potential buyers about the company’s worth. It is a crucial element in investment processes, mergers and acquisitions, and determining the value of the company’s shares or equity. To get to know how your goal is connected to the valuation, see our article 5 Essential Methods for Valuing Your Company
Company valuations are conducted by experts in finance and valuation, such as investment advisors, M&A advisors, economists, and certified valuation experts. These specialists use various methods and tools to assess a company’s value, which can be crucial during sales, mergers, acquisitions, or when attracting investors. Business owners can also perform valuations, but they typically seek professional assistance in more complex cases. More About Us.
If you’d like to do the valuation on your own, we prepared a business valuation calculator for you. You can learn more about it here: Business valuation calculator
Company value is the result of evaluating complex factors, which include assets, revenues, profits, strategy, brand, target market, competitiveness, and many others. It is also crucial to consider future cash flows and the discount rate, which reflect the investment risk. The value of a company is not only a financial result but also its potential and competitiveness in the market.
Apart from our Quick Business Valuation and full valuation service you can use our business valuation calculator – you fill out information on your own and get the result instantly. You can find more information here: Business valuation calculator
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