There are many situations in which business valuations have to be carried out. Besides legal occasions, there are many other situations in which profound valuation services are needed. Depending on the contract and objective, we either act as a consultant or neutral expert.
Our valuation services consider the principles which are relevant for Certified Public Accountants in order to carry out business valuations and other valuation services (IDW S 1, IDW S 5, IDW S 8 and IDW RS HFA 10). Capital value oriented methods are applied regularly. Accordingly, we either make use of the gross rental method or of one of the discounted-cashflow-methods (DCF). The results or range of results which are determined in these cases, are compared to market related, comparative valuations (multiples) in order to ensure their plausibility.
When it comes to valuation reports, we build one team in which our special knowledge of the complex area of valuation theories, of the preparation and audit of integrated business plan systems, of the analysis of industry sector comparisons and also of relevant fringe areas (e.g. tax law) is concentrated. Thus, we secure that for every valuation report customized solutions can be found. Because the quality of valuation services is particularly determined by the ability to consider individual characteristics of the company in a valuation model.
The transparent illustration of the assumptions and calculations is an essential part of our report to the client. Experience shows that there is no such thing as the only “right” company value, with the result that this matter is of big importance. A known fact, which, despite transaction processes, repeatedly leads to irritations between buyers and sellers is that the value of a company does not automatically form the purchase price which is to be paid. The presentation of limit price considerations for the buyer and seller helps preparing and structuring decision-making processes.
Our valuation services comprise:
- Business valuation
Preparation of valuation reports for companies, groups, company divisions etc. in case of legal occasions (for example within the scope of a merger or squeeze out), as well as other occasions (for example purchase/sale of companies)
- Fairness Opinions
Preparation of Fairness Opinions according to IDW S 8 in case of intended company transactions
- Impairment Test
– Preparation of Impairment Tests according to IAS 36
– Equity interest valuation for purposes pursuant to commercial law
- Asset valuation
– Intangible assets (for example brands, customer base) according to IDW S 5
– Equity interest valuation according to IDW RS HFA 10
Realization of purchase price allocations in case of company purchases