We can handle different functions during company valuations as Chartered Accountants. As experts, we ensure an objective company valuation, independent of individual ideas of the parties. As an intermediary or expert arbitrator, we ensure a company valuation, which strikes the right balance between the expectations of the parties involved (e.g. buyer and seller) when they cannot reach an agreement by themselves. Normally we act on behalf of one party and we advise them before negotiations take place and disputes arise. This may include determination of the upper or lower price limit as subjective marginal price from our clients’ perspective or determination of a value, from which our client can start with negotiations. As far as tax basis is needed for the assessment of inheritance tax or the gift tax we generally calculate the value as per the tax regulations.
Click here to read find out about Purposes of Valuations.
Our evaluation procedures
We use one of the following methods for our evaluation:
– Simplified capitalized earnings value method
– multiplier method
– IDW S1 method (capitalised earnings value method or DCF method)
Click here to learn more about each method.