Over the past few years, a variety of assessment methods have become established. This variety of methods results, on the one hand, from the goal pursued by the respective evaluation and, on the other hand, from the associated effort. In general, it should be noted that any business valuation should follow the methodological approach in order to be able to make a reliable statement about the true value of the business.
Roughly, the following methodological approaches can be distinguished. It is noted in advance that at this point only an overview of the different methods is offered. For further information, we recommend our literature tips on business valuation
Through this analysis process, three key messages are defined in the context of profit-oriented company valuation:
What overall profit can be generated in the future?
What risk is this profit in the future?
Which part of the total profit will be sustainable payable to the company owner in the future?
Thus, this approach follows the principles of investment theory, in which an investor first invests its own capital in a company and then participates in the profits of the company. The higher the overall profit, the lower the associated risk of profit, the higher the dividend payout and the earlier profit distributions, the more profitable the overall investment.
The most important profit-oriented methods of business valuation include the income capitalization method and the discounted cash flow method.
The profit-oriented company valuation today very clearly dominates all other methods of company valuation, since in this case the company is considered and evaluated as the sum total of its internal and external overall relationships.
The multiplication method on which the enterprise value calculator is based is also widely used internationally beyond German-speaking countries and is often used by M & A professionals as a quick check on the appropriateness of purchase price expectations in company sales. Price ideas that do not fit into this scheme are often discarded immediately. However, there are other methods of calculating enterprise value.
In order to calculate inheritance and gift tax, the tax offices determine the enterprise value with the so-called simplified income value method. The average operating income of the last three years is multiplied by a factor that is regularly set by the Federal Ministry of Finance on the basis of the so-called base interest rate. The simplified income value method produces (often too) high corporate values, which are well above the market price level. For this reason, company value appraisals are often made to refute those (obviously) overly high corporate values established by the tax authorities using the simplified income method.
The evaluation of a company is one of the central tasks in the accompaniment of corporate transactions and is almost always the most important point of discussion between seller and buyer. In addition to the transaction advice on company and share sales, a professional company valuation is also required. also required at
- Business transfers to family members
- Estate settlements
- Reduction of the inheritance tax burden
The con | cess M&A partners are specialists in the field of market-driven valuation of medium-sized companies and parts of companies.