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Company Valuation

Value your busines to understand its financial health, make informed decisions, plan for the future, attract investors, negotiate effectively and sell the business for a fair price.

Knowing the true value of your business is crucial for making informed decisions, whether you are planning to sell your business, seek investment, or make strategic decisions for growth and realising your full business potential.

The Company Valuation Solution

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  • Value the business as a going concern considering future free cashflows.

  • Assess the historic performance and financial health of the business through fundamental analysis.

  • Assess the future performance and growth prospects of the business.

  • Forecast the future financial performance of the business.

  • Build the future income statement, balance sheet and cashflow statements of the business. 

  • Utilise the actionable insights from the valuation to inform strategic decision making.

  • Use the valuation as a tool to attract investors and sell the business at a fair price.

Benefits of Company Valuation

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  • Understand your business financial health.

    • Fundamental analysis on historic performance to determine the financial health of the business.

    • Identify economic strengths and weaknesses of the business.

  • Make informed business decisions. 

    • Inform your business strategy.

    • Inform your product and customer strategy.

    • Inform your revenue growth strategy.

    • Inform your profit strategy.

    • Understand and unlock the drivers of business value.

    • Inform major business moves.

    • Make informed decisions about the future of the business.

  • Run various scenarios.

    • Run various scenarios to see the impact on the business.

  • Supports and strengthens the business vision.

    • The valuation aligns and supports the vision of the company.

    • The valuation quantifies the success of achieving the vision (aspirations).

  • Obtain Funding.

    • A robust valuation and comprehensive valuation report enhances the likelihood of obtaining funding.

    • The valuation provides access and attracts more investors.

  • The valuation provides a basis to negotiate effectively.

  • Capital expenditure decisions.

    • The valuation considers capital expenditure flows and is therefore helpful in informing capital expenditure decisions.

  • Obtain a Fair price.

    • The valuation will help negotiate a fair price for the business.

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Valuation Methodology

DCF Valuation

The primary valuation technique utilised is the discounted cashflow (DCF) valuation. In the DCF valuation the company is valued as a going concern and the valuation is based on determining the present value of the future free cashflows. The DCF involves analyzing the financial statements of the business over a certain period of time i.e. five years and forecasting future performance.

 

The key drivers of value is the growth in free cashflows (growth in revenue and profit, low capital utilization rates) and return on invested capital.

Earnings Multiples

Earnings multiples are used as a comparative valuation to the DCF.  Earnings multiples utilised include:

  • Price Earnings ratio.

  • EBITDA (earnings before interest, tax, depreciation and amortisation) ratio.

  • Revenue multiples.

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