There are many situations in which you might ask yourself how much your company is actually worth. The most common example is during the transfer of a holding. But the specification of the scope within which a transaction may move, and thus the strengthening of one’s negotiating position as a buyer or seller, is just one example.
In addition to the already mentioned case of a sale, the necessity of a valuation can also arise in connection with legal requirements. For example, when merging an individual company with a corporation, the Reorganisation Tax Act requires proof of the “positive fair market value” of the capital being inserted into the corporation.
The valuation of companies or company shares is a complex process that encompasses the analysis of the past, the current earnings situation as well as future projections. You can leave the application of this technique up to us, but your input is particularly essential when it comes to the projection of future earnings and cash flows.
The result of our valuations are transparent, plausible derivations of enterprise value, depending on the reason for the valuation either in accordance with the expert opinion on company valuation or also simplified indications of enterprise value. This process entails us elaborating representative future scenarios that result in a realistic bandwidth for the enterprise value. After all: the ONE AND ONLY enterprise value doesn’t exist!