We conduct valuations for various purposes
Company valuation
A company valuation can be drawn up for several purposes. It is common for this to be carried out for a sale, acquisition or merger. But it may also be that you have ended up in a conflict or that you need a specific valuation for the tax authorities. Match Plan’s valuation specialists support you with the valuation for various purposes. Our valuation specialists are among the best in the Netherlands in this regard. Of the approximately 300 active Register Valuators (RV title) registered with the Dutch Institute for Register Valuators, five work within the Match Plan team. This way, we assure you of a competent and reliable valuation report.
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Company valuation
Company valuation - How does it work?
A valuation of a company is determined by the expected future earning capacity of the company and the risks associated with it. This does not mean that past results are not relevant, but in themselves they do not guarantee the future earning capacity of the company. That is why the business activities, the revenue model, the underlying value drivers, market developments, opportunities and risks are essential elements for a reliable valuation. Below are the three most common valuation methods that are based on a company’s future earning potential. Given the same starting points, these different methods will give the same result.
- Discounted Cash Flow method (DFC)
A method we often use is the Discounted Cash Flow method. This method does not work with historical results, but with expected future free cash flows. The value of the company is therefore determined on the basis of future cash flows that are generated by the company and are freely available to the providers of capital (equity and debt). An alternative approach is to determine the cash flows to the equity providers. This is called the cash flow to equity method. - Adjusted Present Value method (APV)
As with the Discounted Cash Flow method, the value of the operating activities is calculated. However, with this method the value of the tax benefit (the so-called ‘tax shield’ that arises from the deductibility of interest) associated with financing with interest-bearing debts is explicitly expressed. - Profitability method
This method is based on the future profits that the company can realize if continued. Not only the structural profit capacity is taken into account, but also the past results and the desired capital structure are taken into account.
Calculating company valuation
A company valuation in 6 steps
Company valuation
A valuation for different purposes
The scope and depth of a valuation is determined based on the purpose of the valuation. A valuation can be drawn up for various purposes, including:
When taking over or selling a company; a thorough valuation is a very important aspect. Read more about valuation upon acquisition here
In case of conflicts; such as a business conflict with a partner or a divorce. Read more about valuation in conflicts here
Second opinion and fairness opinion; if you do not agree with a valuation that has already been carried out. Read more about a second of fairness opinion here
Value management; if you want to know where the greatest opportunities lie to increase the value of your company. Read more about value management here
n annual reporting; by means of a so-called impairment test. Read more about an impairment test here
After a takeover; through a so-called Purchase Price Allocation. Read more about a Purchase Price Allocation here
Company valuation
A valuation for different purposes
In our white paper ‘Business valuation – what are the various options?’ you can read what type of options you have regarding a company valuation, including the differences between the various options.
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