OUR EXPERTISE
Company valuation
Value or price? The purpose of a valuation determines the method.
Discuss a valuationWhatever the reason for valuing a company, the purpose sets the goal. A valuation can be needed for formal reasons, such as a shareholder agreement, a succession or a tax question. When financial or strategic interests come into play, value and price must be examined more closely.
When you buy or sell a company, the focus is on the market. You do not want to pay too much or ask too little. Often the first step is simply to clarify whether a transaction is worthwhile before starting a larger project.
Value is not the same as price
Our experts distinguish between the value of a business and the price it can achieve. Value follows from earnings, assets and prospects. Price follows from the market: who is buying, why, and what alternatives they have. There is no reliable general recipe, but there are specific solutions.
A valuation you can use
- Clear statement of the purpose and the appropriate methods
- Analysis of the financial history, the planning and the market position
- A value range with the assumptions that drive it
- A plain-language report you can discuss with shareholders, banks or buyers