Business Valuation Services
Personal and Business Valuation Services | Business Consulting services in South Africa with an International outlook.
As part of our Corporate Finance service offering, we can assist with your valuations either at a corporate or an individual level
Valuation services we can provide
Timely and accurate valuation reports generated on time.
Financial and legal due diligence to provide comfort on the information provided to perform the valuation
Different valuation methods
1. Discounted cash flow (DCF)
2. EBITDA multiples
3. Asset based approach
4. Capitalisation of Earnings
Why and when would a valuation be required
1 When someone has a business, they have built up over many years, its their baby and their nest egg, a valuation on an ongoing basis would provide comfort that their investment is heading in the right direction, if the valuation indicates otherwise, we are able to assist you in turning the value around through a detailed assessment of what’s not working or what’s working and we can assist you to make work better, make the process more efficient.
2 Couples getting divorced - a valuation will assist couples in getting independent professional advice on what constitutes a fair value.
3 Corporate take overs or Management Buy Outs (MBO’s) – When companies are interested in expanding, they will want to acquire strategic assets either being competitors or other assets that will increase their value chain proposition, in order to acquire these assets they will want to determine the value of the proposed targets, conversely the target company will want be valued to avoid it being undersold in the proposed transaction.
4 Valuations are required by IFRS in terms of fair value accounting.
5 The banks may require a valuation in order to provide finance or bridging finance.
6 Valuations can be done on either individual assets or the total company. It is crucial to ascertain why the valuation is being done.
When we conduct our valuation a key consideration for us is what stage of business you are in as this will be a key driver in the valuation methodology used and the questions we need to ask.
The stages include:
- Start up
- Growth
- Maturity
- Renewal
- Decline
i.e.
- If the company is well established with a trading history we can use a PE multiple.
- If the company is newly established we would have to look at whether there were recent acquisitions of similar companies