Company valuations for business sales and acquisitions

A business acquisition provides an opportunity to implement the existing enterprise’s growth strategy faster than planned. In the case of young entrepreneurs, the acquisition of a business – for example in the form of a management buy-out (MBO) or management buy-in (MBI) – represents the chance to be in business for oneself. However, a business acquisition may also be necessitated by the circumstance that a co-shareholder wishes to dispose of his or her share in the enterprise.

For all of the situations listed above, a professional business analysis – due diligence – is required for a company valuation that will stand up. It is only here that the bases for valuation are established and a realistic revenue plan is prepared, risks identified and all factors affecting value are taken into account to the greatest extent possible in the company value and purchase price offer. In the event the purchase price is to be financed, this process is not optional but rather is a mandatory component of a successful credit application.

The sale of a business may become necessary in the course of business succession or the opportunity may arise in the form of an offer from a potential buyer. In order to be able to negotiate the sale of a business, the seller first needs a clear understanding of the company value. An offer may appear tempting but in the end may prove to be a bargain – for the buyer.

Because this is generally a one-time occurrence, the seller must ensure that decades of work building a business are not carelessly put at risk.

Our services

  • Business analyses in all relevant segments (finance, taxes, etc.) in the form of financial due diligence, tax due diligence, etc.
  • Preparation of sector analyses, competitive analyses and market studies.
  • Development of integrated business plans
  • Performance of scenario analyses and calculation of valuation ranges
  • Company valuation using all common valuation methods
  • Development of purchase price financing models and sustainability analyses
  • Preparation of valuation reports for credit applications and sales negotiations
  • Organisation of the entire sales process if desired

Benefits to you

  • Calculation of a realistic sales price
  • Pre-selection of offers
  • Acceleration of credit applications through professional preparation
  • Avoidance of costly misjudgements
  • Preparation of detailed bases for valuation for purposes of purchase price guarantees
  • Assurance of a confident negotiating position
  • Efficient negotiations based on detailed expectations of value