When it comes to transactions and strategic planning, the value of a business or its shares is of great importance.
When does valuation occur?
- When buying or selling a business (or equity interest)
- With shareholder disputes
- When determining the value of individual elements in a business
- In the event of a potential or tax settlement following a proposed value transfer
- With economic loss
Independent of a transaction, you want to drive value addition in your strategic planning. An economic valuation can be very useful in this regard.
Appreciation occurs at all stages of a business’s life cycle. At the start-up, for example, to raise equity, during growth to attract funding, new shareholders or when selling to a successor.
Value does not equal price
Valuation is done on the basis of analysis of company data, including history and future expectations. Analysis of the business (degree of organisation and quality), its position in the market and other environmental factors are also very important in valuation. The price is a negotiation result between parties, each of which has its own position, starting point and viewpoint. Price therefore does not equal value.
Corpance would be happy to guide you through this playing field and always incorporate this fact into its economic value reports.
Corpance’s team has the expertise and experience to guide you through all facets related to value and valuation. Corpance’s advisers are members of the professional association of the Netherlands Institute for Register Valuators, (NiRV).