Valuation

The need for external company financing may arise due to various events. For instance, strong autonomous growth of business or investment opportunities arising for your company. Or relating to an acquisition by transferring another company. The funding of the capitals needed can be effected in various manners.

 

The golden rule of valuation is: not the asset is counting but its earning capacity. Or to put it in an other way: what would be the value of splendid equipment if there are no orders to be produced.

 

As explained the valuation process is no matter of objective science. There are many methods, some are more appropriate than the other methods, depending of circumstances and point of view, and obviously it is important for the method chosen to be applied correctly and consistently. However, valuation means more than ‘just doing the math’. Crucial in any business valuation is to analyzing the company’s structure, their market position and weak and strong points. Also of importance is to have a large transaction experience and a rational look at the business, apart from emotional things. Match Plan will offer you all these qualities. At the end, the set up of a valuation by choosing parameters is just as important as the outcome: one tells you nothing without the other.

 

Also of importance is to have a large transaction experience and a rational look at the business, apart from emotional things. Match Plan will offer you all these qualities. At the end, the set up of a valuation by choosing parameters is just as important as the outcome: one tells you nothing without the other.

The roadmap for a valuation can be described  as follows: 

1. Establishing plan of approach

• Establishing of the valuation object
• Determination of the valuation moment
• Determination of the valuation method

 

2. Establishing and collecting required information

• Establishing questionnaire to analyzing the companies business
• Checking information received by visiting premises/discussions with the management
• Complete analyzingprocess of the company/business

 

3. Working out valuation

• Establishing valuation model
• Recording valuation outcomes in a writtenreport (concept)
• Discussing/finalizing report