A person or a company might decide to valuate a business for several reasons, but usually they are related to M&A activities.
WHICH COMPANIES NEED THIS SERVICE AND WHEN IS THE RIGHT TIME FOR IT?
Business valuation of companies, brands etc. is suitable for any company that wishes to be aware of actual value of the valuation object. Clients usually require this service before contemplated M&A activities, but also when it comes to squeeze-out, recapitalisation, IPO, goodwill valuation etc.
WHAT'S IN IT FOR THE CLIENT?
Taking into account that object's value is often influenced by the subjectiveness of persons involved in the business itself, a business valuation allows a deeper insight into the real value of the valuation object.
WHICH EVALUATION METHODS ARE NORMALLY USED IN VALUATION?
Valuation methods that are normally used are:
- DCF method
- Multiples (relative) method
- Asset-based method (net asset method)
Read more about valuation methods below!