Advisory
Understand the Value Drivers of Your Business
A company valuation is an evidence-based assessment of a business or ownership interest at a particular date and for a defined purpose. The appropriate method depends on the business, industry, stage, available information and reason for valuation.
Purpose
Common reasons for valuation
- Sale of a business, brand, division or assets.
- Equity fundraising or shareholder transaction.
- Merger, acquisition or joint venture.
- Debt financing and lender requirements.
- Employee stock options or internal planning.
- Tax, dispute, succession, restructuring or regulatory purposes.
Methods
Valuation approaches
Income approach
Including discounted cash-flow analysis based on expected future cash flows and risk.
Market approach
Using comparable listed companies or comparable transactions where reliable data exists.
Asset-based approach
Assessing the value of underlying assets and liabilities, often for asset-heavy businesses.
Sector or stage-specific methods
Applied where the business model, stage or industry makes standard approaches unsuitable.
No single method is always correct
Qualified professionals commonly apply more than one method and exercise judgment based on the purpose of the valuation, the quality of available information and the facts of the business. A valuation is an opinion at a point in time, not a guaranteed price.
Enquiry
What we ask in a valuation enquiry
- Purpose of valuation.
- Legal entity and jurisdiction.
- Industry.
- Years in operation.
- Revenue and EBITDA ranges.
- Percentage holding or asset being valued.
- Desired completion timeline.
- Available audited or management financials.
- Contact details.