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Business valuation
Business (company) valuation by means of various techniques, calculation of weighted business value for sale or purchase of business or its share.

Any business differs considerably from standard goods or services which have market value determined by supply and demand balance. Thus, businesses uniqueness brings up an issue of their valuation.

Our approach to business valuation

Taking into account the country-specific characteristics of Belarus we primarily use classic internationally accepted business valuation methods:

  • replacement cost method;
  • net present value method.

During business valuation it is necessary to shift focus from the past «how much has been invested in business» to the present and future «what is the value of recreating the same business» and «is this business likely to generate profit for its shareholders in the future».

During business valuation with the use of these methods, we investigate the mechanism of recreating the same business from scratch taking only relevant costs into account. For net present value calculation we develop detailed projections of the company's activities for the next few years and analyze risks for correction of an investor's desired profitability rate.

What is a result of business valuation?

As a result of this service the company's management and owners will obtain understanding of their business value (or its share value) and a set of documentation which substantiates this value in detail and can be delivered to potential investors for their own analysis:

  • business valuation report containing business values calculated by various methods with all the supporting calculations, along with the weighted business value based on the weights of each valuation methods used.
  • detailed business plan of the company's development strategy.
  • investment offer.

 

 

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