Valuation of companies and assets

Valuation is an art, but not a science. The “right” valuation of companies or publications requires an indepth understanding of the quality of the asset under valuation, of its “strategic fit” for various buyers and the realistic purchase price currently achievable on the market.

As part of our annual M&A survey, we collect current assessments of decision-makers in the industry by taking a broad poll. From this, we determine the customary market-multiples on turnover and Ebit. Thus these figures constitute a valid and up-to-date “compass” that can be used to define the purchase price range for your undertaking very precisely. This will make your negotiations significantly easier.

Generally, the valuation of digital business models (like online portals) is governed by other rules. Unlike the mature “traditional” businesses, sustained growth and above-average future profitability are the focus of attention. We have experience in the use of the now commonly accepted DCF (discounted cash flow) valuation method. Our financial valuation models give a detailed portrayal of the key assumptions in business planning and are comprehensible to all participants. This makes the specific risks and opportunities for buyer and seller transparent and useful in their negotiations.