Business valuation
Business
There are many reasons to have a valuation carried out, such as:
- A merger or acquisition
- Succession planning within the family
- Disputes between shareholders
- Employee participation
- Legal or tax href="/en/diensten/belastingadvies/optimalisatie-fiscale-structuur">structuring/restructuring
- Financing
- Entry or exit of shareholders
- Impairment and purchase price allocation (for accounting purposes)
The two most important elements in any valuation are the business’s future returns and its risk profile. These are determined by a range of variables, including revenue and cost forecasts, and expected investments in fixed assets and working capital.
To arrive at a robust and reliable valuation, we use the Discounted Cash Flow (DCF) method.
DCF method
An important feature of the DCF (Discounted Cash Flow) method is that it is based on cash flows rather than profit. Cash flows offer a more objective basis for valuation, as they are not influenced by accounting policies or principles.
The DCF method reflects the dynamic nature of differences in growth and investment, making it suitable for valuing businesses at any stage of their lifecycle. It provides insight into the key value drivers of your company and the future cash flows associated with various market and company-specific opportunities and risks.
With this insight, you can actively manage and optimise the value drivers of your business, ultimately creating more value. A valuation is not only useful to support an offer or asking price, as regular valuations also support sustainable growth and help inform your strategic decision-making.
What is my business worth?
What is your business worth? Three out of four business owners don’t know. In this blog, I explain how a business valuation works and when and why it can be worthwhile.
Expertise
We are officially registered as court-appointed financial experts with the Dutch National Register of Judicial Experts (LRGD). In this capacity, we carry out independent valuations and damage assessments for courts across the Netherlands. We also act as party-appointed experts in legal proceedings.
In addition, we are affiliated with the Netherlands Institute of Registered Valuators (NIRV). A Registered Valuator (RV) has completed a formal Business Valuation programme and specialises in delivering high-quality, independent valuations. These assignments are held to the highest standards, requiring robust, well-reasoned valuation reports and careful consideration of all relevant aspects.
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