Business valuations
Buying and selling companies or parts of companies … mergers … restructurings … changes in shareholder structure… inheritance and succession planning … litigation and disputes: There are many reasons to value a business. We can calculate its fair value for you, reflecting its specific characteristics and situation. Based on this, we can advise and support you in all negotiations about the value of the business.
We assemble specific teams for each engagement to ensure that the business valuation is implemented quickly and professionally.
In the case of valuation engagements, the reason for the valuation and the valuation method to be applied play a key role, in addition to the size and sector of the company to be valued. The most common reasons for business valuations include:
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Reaching agreement on a fair purchase or sale price lies at the heart of every corporate transaction. A key precondition for the success of the transaction is a comprehensive valuation.
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We value enterprises for company law transactions and reorganizations, such as mergers, split-ups, or squeeze-outs.
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Statutory or voluntary financial reporting under internationally accepted accounting standards requires the fair values to be identified in many areas. In business combinations, this applies both to tangible and in particular to intangible assets (e.g. customer base, goodwill, …). The annual impairment test for assets and liabilities carried at fair value is subject to different rules and procedures under IFRSs and US GAAP.
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A company’s IPO (initial public offering) is a major step into a new future. We can support an IPO in a variety of ways as an adviser to the lead manager or the IPO candidate itself.
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We will identify objective enterprise values for you for litigation and disputes, such as inheritance disputes and divorce proceedings.
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We will identify the enterprise value for you if there are any changes in the shareholder structure. For example, this determines the amount that a new shareholder has to contribute or a withdrawing shareholder is able to demand. Different methodologies can be used, depending on the type of valuation. We will agree the appropriate method(s) with you, ensuring compliance with the relevant court rulings.
Income capitalization approach (Ertragswertmethode)
This is the most common method used to value enterprises in Germany. It considers the future financial surpluses of a company that accrue to its shareholders. The income capitalization approach is suitable for most valuations and can be used to identify both an objective enterprise value and a “reservation value.