A valuation involves more than just numbers.
The value of a company is always relative, it is different for everyone. One person might only see risks, while another can see opportunities because of synergy with its existing activities.
Our clients are (medium) large companies, DMSs, investors, accountants, banks, lawyers, courts and tax specialists. Depending on the purpose of the valuation of the company an assessment is made with respect to the desired valuation method. A wide range of methodologies can be used to create a valuation, varying from relatively simple to extremely complex methods. Some examples are the intrinsic value, the profitability value, multiple valuations and the Discounted Cash Flow ("DCF") method. Although the DCF method seems the most appropriate from a theoretical perspective, the strength often lies in being able to combine different methods.
Although the arithmetic result is not rocket science, errors are frequently made in practice when drawing up the valuations. Such as using insufficient information, errors in calculations, unrealistic forecasts, not including investments in fixed assets and working capital, insufficient consideration of the risks of a company and failing to analyse the specific situation a company and/or buyer is involved in. Especially during legal proceedings, an extensive preparation is half the battle. During these proceedings we pay a lot of attention to the right assignment and process description in order to assure a practical execution.
An (indicative) valuation is often the start of an acquisition or sales process of a company. The valuation provides a proper insight into the main factors that determine the actual value of a company. This insight enables us to achieve a maximum negotiation outcome for our client. Therefore, it is recommended to determine the value from the buyer’s point of view to use this insight during the negotiations. A valuation also provides a clear overview of the main risks.
Why Maasdael?
Maasdael Corporate Finance has extensive knowledge and a wide range of experience with both legal and fiscal issues. Due to our theoretical knowledge we are regularly consulted by courts, lawyers and tax specialists to assist with complex economic disputes and issues. Several Maasdael advisors have completed the postgraduate course Business Valuation at the Rotterdam School of Management and are registered as Register Valuator. Maasdael Corporate Finance is associated with the Dutch Institute for Register Valuators (“NIRV”).
