Business valuation
A valuation tells you what a company is realistically worth, and why. We value it with a discounted cash flow model (DCF) and sector multiples, adjust earnings for one-off items and show every assumption openly.
What you get
- Value by two methods. A DCF model and comparable sector multiples, cross-checked against each other.
- Normalised earnings. Owner's salary, one-off items and related-party transactions adjusted.
- Market-based parameters. Cost of capital based on sector risk and the market risk premium.
- Sensitivity analysis. How value changes if growth, margins or the required return change.
- Value drivers. What raises and lowers value, and what to work on before a sale.
Two scopes
Questions about valuation
How is a company valued?
The most common methods are the discounted cash flow model (DCF), which discounts future cash flows to today, and multiples, which compare normalised earnings with the valuation of similar companies. We use both and explain why the final value falls within a given range.
What information is needed?
Financial statements are enough for a light report. A full valuation also needs monthly reports, a budget or forecast, and details of owner salaries and one-off items.
Is the valuation the same as the purchase price?
No. A valuation gives a justified value or range. The purchase price also depends on net debt, working capital, deal structure and the negotiating position.