Financial valuation helps a company’s founders, shareholders and potential investors determine the value of the company.
The need for a financial valuation may arise in connection with the different circumstances set out below:
- If the sale of the company is planned, knowing its market value is important for setting the right sale price.
- When seeking to raise capital, the valuation will form the basis for the investor’s final decision.
- In potential disputes among shareholders, or where one or some of the shareholders wish to leave the partnership or retire, a comprehensive analysis and appropriate pricing of the company’s shares is very important.
The services we provide in this context can be listed as follows:
- Reviewing the company’s operations and preparing forward-looking projections
- Determining the value of the company using the Adjusted Net Asset Value, Discounted Cash Flow and Market Multiples methods accepted in international markets
- Establishing the difference between minority and majority shareholdings
- Goodwill valuation
Financial Due Diligence Reports
Financial due diligence is a method of examination used in all forms of corporate finance, such as privatisations, mergers and acquisitions, sales of minority stakes, private placements, initial public offerings and project finance, particularly for transactions above a certain size.
The expectations from a financial due diligence engagement can be listed as follows:
- To measure the reliability of the information provided by the company,
- To bring the company’s commitments to light,
- To establish whether the value of the company represents a reasonable price,
- To form a view on whether the company’s past financial performance is sustainable,
- To obtain a professional opinion on the company’s potential future profitability and cash generation capacity.
The main purpose of our financial due diligence services is, for both the buyer and the seller, to identify the financial and operational performance of the target business, its risks and any potential findings that could prevent the deal, so that the purchase or sale process is completed as smoothly as possible.