During a business valuation, future cashflows and any risk related to these are studies thoroughly, with commercial, legal and fiscal factors being considered.
Gaining good insight in all factors that determine value (value drivers) and any risk related to these is a key step in any successful negotiation and optimization of value.
When it comes to transactions a solid valuation is paramount for sound decision-making. This may include transactions like mergers, take-overs, management buy-ins (MBI), management buy-outs (MBO), acquiring a stake in a company or transfer of specific assets.
A valid valuation offers a platform for decision-making by all stakeholders, including you, (other) shareholders or directors. It also offers a strong starting point for negotiations and is useful in the search for the right buyer.
"If you ask me, 'So what is your business model?' Our business model's always about shifting to higher value opportunities."