Value and price - Step 2
In this step follows for you the detailed assessment of your company.
As a rule, we work according to the capitalised earnings value method in the classification according to the IDWS1 (Institut der Deutschen Wirtschaftsprüfer) method.
The basis is the annual financial statements of the last 3 business years. These are adjusted for extraordinary expenses or income. Likewise, a realistic assessment of costs, wages and salaries or tax optimisation is carried out.
In the case of several companies, it is advisable to consolidate the figures (separate service) for the sake of compact clarity.
On this basis, planning figures for the future, economic development of at least 3 to 5 years are prepared. If you wish, we can support you in this important task of determining value.
The assumptions of the target figures should be justifiable and take into account the upcoming succession.
In this process, you receive a draft in advance, which we then discuss and approve with you for a final version. Of course, we work closely with your tax advisor in this important analysis and determination of the company value.
The determination of a company’s value is not only an important basis for decision-making for buyers, but is also actually almost indispensable for banks and financing partners in the context of a transaction.
Your company’s performance will thus be comprehensible and the perspective of the target figures will justify the important future of an acquirer.
For smaller companies (size of less than 1 million euros/CHF transaction value), the Business valuation may also be omitted or implemented in another standard.
Alternatively, the condensed key figures of the past are shown in a short form. Supplemented by the planned figures mentioned above.
However, not on the basis of the recognised income capitalisation approach according to IDWS1.
For certain business models there is also the Substance value method or AWH method.
You will receive the final version in two print versions (bound) and as a digital file in PDF format.