A company valuation becomes necessary if there are changes to ownership such as purchase/sale of the company or a change to shareholders. It is recommended that you get professional assistance since this is a very important decision with wide-reaching financial implications. Professional help will not only ensure a suitable and appropriate valuation but will also enable risks to be detected earlier.
Our experienced trustees use the most relevant valuation methods when performing their duties:
The intrinsic value method is the most conservative valuation method where the intrinsic value is considered as the lower limit of the company valuation.
Company value is
determined using the assets listed on the balance sheet minus debt. Hidden
reserves and the corresponding deferred tax burden are also included in the
calculation. This method allows a company valuation without including future
income or the know-how of employees.
The capitalised earnings method includes valuation of individual payment inflows which are expected in the future. The estimated future incoming cash is either earnings or cash flow. The company’s value is determined by the discounted future cash flows and profits.
The market value method is a comparison method that determines the company’s value by using the prices of similar securities or the acquisitions of paid purchase prices
This enables us to combine various valuation procedures to provide the most realistic valuation possible.
Including further parameters from the performed due diligence is indispensable during comprehensive company valuation as these will affect the purchase price. We can also assist here and organize/manage this process for you.