WHEN CAN IT BE USEFUL?
Performing business value estimation can be useful in the following circumstances:
- in the case of a business transfer, for the purpose of providing the potential transferor and transferee with information on the value of the subject of the transfer
- for the verification of data reported in the financial statements of the company that owns stakes or shares in other companies
- in case of transfer of business units
- in the case of a dispute that has arisen between partners as a result of allegations of having acted intentionally to the detriment of the company, brought against one or more partners, or in the case of a dispute over the price for the units or shares transferred to the partner availing himself of the right of first refusal
- it is also useful for the purpose of assessing enterprise creditworthiness and determining collateral coverage for a loan
- to determine the value of investment fund assets
- estimation of the value of the company can also serve in the case of a company merger or demerger
- in the case of an arrangement with creditors, bankruptcy or business liquidation
- in the case of a capital increase or a redemption of units or shares
COMPANY VALUATION METHODS
There are different methods of company valuation (income, multiple, equity, ...). Each case is different, consequently it is not possible to always apply the same approach. It is the qualities of individual companies and the objective of the valuation that determine our attitude and the appropriate company valuation method.
RSM can support you in the business value estimation activities you need, with a team of experts who have experience with both small family businesses and large multinational corporations operating in a variety of industries.