A valuation is almost always part of an M&A transaction process. A valuation forms the basis of the negotiations and the pricing of the company in question. The valuation exercise can be executed on behalf of the acquirer or seller, in an arbitrage situation or as an expert opinion for the courts.
We base our valuations preferably on the Discounted Cash Flow (DCF)-method, meaning:
Acquirers and sellers rarely share the same expectations for the future. A professional exploration of each other's point of views provides an infinite insight into the quality of the forecast. The next step is then to determine the key value drivers and their impact (sensitivity-analysis) on the outcome of the valuation, in order to arrive at a sustainable valuation
Basis for pricing
The valuation exercise provides a basis for the pricing of a company and forms a starting point in the negotiations. The outcome of the negotiations however is also influenced by:
For more information please contact our specialists.