Company valuation

Appropriate valuation of the transaction object is a central component when preparing for a planned company translation. A variety of parameters have to be included in order to be able to submit an adequate valuation.

A company valuation becomes necessary if there are changes to ownership such as purchase/sale of the company or a change to shareholders. It is recommended that you get professional assistance since this is a very important decision with wide-reaching financial implications. Professional help will not only ensure a suitable and appropriate valuation but will also enable risks to be detected earlier.

Our experienced trustees use the most relevant valuation methods when performing their duties:

Intrinsic value method

The intrinsic value method is the most conservative valuation method where the intrinsic value is considered as the lower limit of the company valuation.

Company value is determined using the assets listed on the balance sheet minus debt. Hidden reserves and the corresponding deferred tax burden are also included in the calculation. This method allows a company valuation without including future income or the know-how of employees.

Capitalised earnings method

The capitalised earnings method includes valuation of individual payment inflows which are expected in the future. The estimated future incoming cash is either earnings or cash flow. The company’s value is determined by the discounted future cash flows and profits.

Market value method

The market value method is a comparison method that determines the company’s value by using the prices of similar securities or the acquisitions of paid purchase prices

This enables us to combine various valuation procedures to provide the most realistic valuation possible.

Including further parameters from the performed due diligence is indispensable during comprehensive company valuation as these will affect the purchase price. We can also assist here and organize/manage this process for you.