Valuation of companies and projects
When you have a company, investment or project, it is possible to have it valued. A distinction can be made between the intrinsic value and the value based on the expected cash flows, which flow from the company, the investment, or the project.
The intrinsic value usually revolves around the value of the individual components, while a valuation based on the expected cash flows depends on uncertain future expectations. Various methods can be used for valuations. For example, valuation can take place based on:
- The Discounted Cash Flow method (DCF method)
- The (improved) profitability method
- The goodwill method
- The likelihood of cash flows within different scenarios (real options)
- The Adjusted Present Value method
- The multiple method
- The Net Asset Value Method
We determine which valuation method is best based on the characteristics of the specific case. If possible, multiple valuation methods are used side by side for reference. Where necessary, we obtain external expertise from, for example, an appraiser.
A value range usually follows from a valuation. This gives a reasonable approximation of the minimum and maximum value of your company, investment, or project.
Business decisions
Valuations are an important part of various (strategic) business decisions such as:
- Whether or not to:
- Take over a company;
- Sell a company;
- Buy out a co-shareholder or partner;
- Expand the production capacity;
- Participate in a new project;
- Accept a settlement proposal.
- Or:
- Determining the reasonableness of an offer;
- Determining reasonable transfer pricing;
- Determining the creditworthiness of a party.
We have broad experience in valuing companies, investments, and projects. We are happy to support you with your valuation issue.
Make an appointment with one of our advisors.