Registered Valuator: Specialist in accurate valuation of your company

A Registered Valuator determines the value of a company based on its future earning capacity and the associated business risk. The Registered Valuator considers the company's economic value, not its book value. This means the valuation is based on expected cash flows and the risks associated with the company's operations and the market in which it operates.

To make a sound and objective valuation, a Registered Valuator uses various methods. The most common methods are Discounted Cash Flow (DCF) method, the Adjusted Present Value (APV) method and the Improved Profitability Method.

Discounted Cash Flow (DCF) method

The DCF method is one of the most widely used techniques for valuing companies. It estimates the company's expected future cash flows and discounts them to their present value, taking into account the company's risks. The DCF method is suitable for companies with growth ambitions or whose future cash flows are difficult to predict. This method offers a detailed and in-depth valuation by reflecting the impact of future developments on the company's value.

Adjusted Present Value (APV) method

The APV method is a refinement of the DCF method and specifically considers the tax benefits arising from a company's capital structure. Instead of directly discounting cash flows, the cash flows of a fully financed company are first calculated and then the value of tax benefits is analyzed separately. This method is often used for companies with complex capital structures, such as leveraged buyouts (LBOs) or other situations where the financing structure has a significant impact on the company's value.

Improved Profitability Method

This method focuses on calculating a company's future profitability based on its expected earning capacity. It considers expected net profit, capital structure, and the risks associated with operating the business. The enhanced profitability method is often used for companies with stable and predictable earnings potential and offers an objective picture of long-term value.

The valuation is often supported by a SWOT analysis (strengths, weaknesses, opportunities, and threats), a risk profile, and a market analysis. By combining these methods and analyses, the Registered Valuator can calculate a well-substantiated and reliable value. This ensures that the valuation is based not only on historical figures but also on the future prospects and the specific circumstances of the company.

This thorough approach ensures that companies with varying risk profiles, growth opportunities, and financial structures can be accurately valued. It's a process that requires in-depth knowledge of both business economics and market conditions, which is why it's important to engage a Registered Valuator for a professional valuation.