Traditionally business valuation has been used to determine the price in a transaction. However, valuation gives also insight in the value-creation (value drivers) ability of a company and is useful for determining the strategy of a company.
There are various theories about and methods for business valuation. Valuation is subjective and depends on many variables. Understanding the object or company to value forms the basis for an appropriate valuation. No matter what question about valuation you have, we can always provide an answer. We have a specialised department for this services, known as the Valuation Desk, which is the source of all our knowledge and experience in the field of valuations. We have a number of Registered Valuators (certified specialists in the field of company valuations) who have the knowledge and expertise to perform any value analysis you need. We determine the reason for carrying out your valuation on the basis of roughly five sub areas.
Introduction to valuation
No matter what the background to the valuation is, a valuation is always based on future expectations. The focus should not be on the value of the assets, but on the earning capacity of the assets.
The above implies that valuation is not an exact science. There are several methods. Crucial aspects of a valuation are acquiring an insight into the business, (transaction) experience and using common sense. In the end the substantiation of a valuation is just as important as the outcome.
- Transaction; you need a clear substantiation of the asking price when selling your company. If you intend to take over a competitor you will want to have a thorough insight into how much value this business adds to your company
- Business economic; How do you actually earn your money? And how much influence can you exert? Our value analysis clarifies these questions. This analysis can also be the beginning of a real focus on value within your business, referred to as Value Based Management.
- Legal matters; A dispute or legal proceedings are situations people want to avoid, but sometimes they are unavoidable. After all, it is not always sweetness and light between the shareholder. It may be that the different visions of the shareholders about the company’s future are too diffuse.
- Fiscal matters; Our experience with, for example, valuations in lawsuits means our reports are drawn up in such a way that we support the outcome and are only too pleased to conduct discussions on your behalf with any party involved
- Fair value accounting; Based on IFRS rules assets have to be assessed on 'fair value'. This applies, in particular, in connection with the more 'intangible' assets, such as goodwill or intangible fixed assets (trademark rights, customer portfolios, development costs).