Business valuations

The value of a business

What is the real value of your company? What is your business worth? How can a detailed valuation model help to determine your true company value? What are the current variables used in your industry? What does a buyer appreciate in your company?

Do you want to maximize the value of your company? Your company is your life. There can be several reasons for a sale. Of course, all company owners want a good price during the sale of their company. Read increase the value of my company to find out how to realize the highest company value and complete a successful sale.

About valuations

There are many different angles and aspects involved in a valuation. Valuations depend on the industry your company is in as some industry buyers pay higher multiples. This is mostly the case when growth perspectives are higher or more synergies exist in these industries. The value depends on the state of the economy, in recession valuations are usually lower than when the economy is booming. It also depends on the key drivers of your company and how it is structured. Do you have long-term contracts where your customers are ‘locked in’? Is your legal and management structure set up well?

What matters, in the end, is what a serious buyer is willing to pay for your company and what you are willing to accept as the seller of your company. It is often said that valuation is as much an art as it is a science. The way a company is being positioned and especially the fit to a suitable buyer can significantly help in achieving a high valuation.

Valuation methods

How to technically value a business? The valuation of a company can be done by many methods and a lot of literature exists on the topic of valuations. The DCF method (discounted cash flow method) is used quite often. Another way to value a company is to take industry multiples (mostly EBITDA) and use these on the company’s financials to come up with an estimated valuation. These multiples are available from previous deals done in the market by our team or from publicly available information. Visit valuation methods for your company for details about the main valuation methods.

Business valuation models

The people on our team prepare detailed valuation models depending on the requirements of each specific project. We have the know-how and resources in-house to prepare a specific valuation that fits your needs. When doing a business valuation, it is important to ‘normalize’ the financial accounts for ad-hoc items to get the true view of a company’s financials.

Industry valuation differences

Corporate Finance in Europe works with industry teams that are up-to-date with the latest valuations in the industries we work in. We know what individual buyers have paid and are willing to pay for your company. We also know how to best position your company, so it is most attractive to a buyer.

Obviously, differences exist in valuations between companies in other industries. The specialty chemical distribution, BPO (business process outsourcing) or forwarding industries all have their own valuations. We have M&A and valuation specialists that have their background in each industry and are best suited to help you with a valuation for a specific company.

Use our simple valuation tool to get a valuation estimate for any business

Our industry valuation tool is a web-based application that provides all the necessary information on the current and future value of companies in the specific industries. This can be used by business owners, investors, analysts and others who need to make decisions about what companies in different industries are worth.

Our industry specific valuation tools can be found here:

Valuation tool for automotive companies: CLICK HERE  

Valuation tool for chemical companies: CLICK HERE

Valuation tool for food companies: CLICK HERE

Valuation tool for healthcare companies: CLICK HERE

Valuation tool for IT/ICT companies: CLICK HERE

Valuation tool for manufacturing companies: CLICK HERE

Valuation tool for pharma companies: CLICK HERE

Valuation tool for plastics companies: CLICK HERE

Valuation tool for transportation companies: CLICK HERE

Information about the value of your company

Feel free to contact us if you have any questions concerning the value of your company. A competent team of appraisers is ready to assist you. Visit business valuator Amaya Garmendia to learn more about our head of the valuation department.

Valuations are a particularly important step in the M&A process. It is wise to get more knowledge about the process to have a better overview. For this reason, we advise you to read one of the pages below:

• The process of selling a business
• The process of buying a business