There are numerous reasons and occasions that make a business valuation necessary. One of the main reasons for both small and medium-sized enterprises (SMEs) and corporate groups is the purchase or sale of companies or individual business units.
We work in accordance with the relevant principles for tax consultants and certified public accountants for the implementation of business valuations (KFS/BW 1). This is followed by different assessment procedures such as
- Discounted cash flow method (WACC, APV)
- Capitalised earnings method
- Substance value method or
- Mixed forms of the mentioned methods
It is crucial for a reliable valuation to determine the market position of the company in question by comparing it with relevant key figures and to include the structure and development prospects of the relevant market environment.
Our valuation team consists of specialists with in-depth knowledge of complex valuation theories, experience in preparing and reviewing integrated planning calculations and profound tax knowledge.
The specialists at CENTURION will be happy to assist you with any valuation questions you may have.
Whether you are looking to acquire, dispose of or transfer shares within the shareholder group, the question of fair value or minimum/maximum price is crucial. Our advisory team will be happy to assist you with questions relating to the value of assets. In doing so, we can act either in the capacity of a neutral expert, an advisor to one of the parties or an arbitrator/mediator.
The planning of financial surpluses represents a central element of every business valuation. It requires extensive information gathering and, based on this, past, current and future-oriented company analyses and is to be checked by plausibility considerations with regard to its appropriateness and freedom from contradictions. The financial surpluses are generally based on an integrated planning calculation prepared by the management as comprehensively as possible, which is summarised in planned balance sheets, projected profit and loss accounts and financial plans.
If the management of the company does not provide a business plan suitable for the purpose of a business valuation, we as the appraiser can prepare a plan of the financial surpluses on the basis of the analysis of the past, the development lines identified by the appraiser in the process and the other available information.
Special features of the valuation of small and medium-sized enterprises
Characteristics of many small and medium-sized enterprises (SMEs) are in particular a limited circle of owners, owners with a managing function, participation of family members of the owner(s) in the company, no clear demarcation between business and private assets, few business units, simple accounting and simple internal controls.
For these companies, risks therefore result in particular from dependence on only a few products, services or customers, a lack of or undocumented business planning, insufficient equity capitalisation and limited financing options. Due to these specific factors, the valuation of SMEs requires special know-how.
Our specialists have experience in a wide range of company sizes and sectors and will be happy to answer any questions you may have.
The following is an excerpt of our services in the field of business valuation:
- Expert Valuation
- Financial Planning and Analysis
- Fairness Opinion
- Purchase Price Allocation
- Impairment Test